Probleman online retailer of a single product has four, Ask an Expert

Management Studies

Problem:

An online retailer of a single product has four major markets in the four "corners" (North-East, South-East, North-West and South-West) of a country. Assume that daily demand in each market is exactly 10 units. The retailer currently has a distribution center located in each of the corners to ensure that customer orders can be fulfilled quickly. The distribution center replenishes its inventory from the manufacturer at a unit cost of $3200 and a fixed ordering cost of $62500 per order. The cost of capital for this retailer is 0.2 $/$/year. There is now a proposal to consolidate the inventory of this firm at one central distribution center and to close the four regional distribution centers. Assume that sales will not be affected by the increased order fulfillment times caused by this change to the supply chain.

Required:

Question 1) How does the cost per unit (taking ordering costs and inventory holding costs also into account) change for this retailer by this supply chain change? Solve the given numerical problem and illustrate step by step calculation.

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91147922

Have any Question?Write your Review or question?

Related Questions in Operation Management

Sprig is an on demand delivery restaurant that offers

Sprig is an on demand delivery restaurant that offers balanced meals which are fully prepared and delivered within 15 to 20 minutes. Identify two (2) additional target markets upon which Sprig should focus. Within your r ...

In a capitalist society it is the mission of private

In a capitalist society, it is the mission of private industry to make a profit. The more profit made; the better the company can establish competitive advantage. Those who do not pursue profit maximization usually fall ...

Scenarioimagine that you are tasked with leading a workshop

Scenario: Imagine that you are tasked with leading a workshop involving leaders of an organization for whom you work. The purpose of which is to help participants understand key legal and ethical issues related to fair t ...

You have been hired as a change management consultant for a

You have been hired as a change management consultant for a manufacturing company. The leadership of the company currently uses a top-down management approach. The organizational structure is a hierarchy (pyramid type). ...

1 describe and rate volkswagen 1 business ethics 2 social

1. Describe and rate Volkswagen 1) business ethics, 2) social responsibility, and 3) environmental sustainability 2. List and describe the three types of administrative agencies 3. Briefly explain how environmental uncer ...

Assignmentdevise and design a green logistics program for

Assignment Devise and design a green logistics program for an organization. You may choose an organization you are familiar with or create one but you must address the following items in the project: · Overview of the or ...

Assignmentwrite a 1050- to 1400-word paper in which you

ASSIGNMENT Write a 1,050- to 1,400-word paper in which you describe a project you have managed personally or professionally. Examples may include a trip you planned, a new product or service developed for your employer, ...

What if a parking garage with daily or hourly fees and used

What if a parking garage with daily or hourly fees and used by employees, patients, families, and visitors were located on a parcel of land owned by and adjacent to the hospital property? Would that use be exempt in Alas ...

Brenda patterson patterson plaintiff a black employee

Brenda Patterson (Patterson) (plaintiff), a black employee, worked for McLean Credit Union (McLean) (defendant) for a decade before being laid off in 1982. Patterson sued McLean for various violations under 42 U.S.C. § 1 ...

1 where an exponential distribution analysis could be used

1. Where an exponential distribution analysis could be used for work efficiency within a government entity would be and why? Where a Poisson Distribution analysis could be used for work efficiency within a government ent ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert