(Answered) Fromnbspsupply chain logistics management bowersox closs

Management Studies

From Supply Chain Logistics Management, Bowersox, Closs, Cooper, & Bowersox, p. 185:

You have been asked to establish an inventory carrying cost percent to supply your firm's supply chain planning initiatives.

Identify and describe the carrying cost components.
Review the various approaches to determine the opportunity cost component and provide the rationale for each.
Recommend which approach you would use and why.
Identify the implications of the opportunity cost decision on supply chain design decisions.

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