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Page536. Question2: How would the holding cost of safety inventory

November 8, 2021

Page536. Question2: How would the holding cost of safety inventory change if labeling and packaging were moved to the DC? Evaluate the change in inventory costs as the correlation coefficient of demand between any pair of customers varies from 0 to 0.5 to 1.0.

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Guidelines for Written Case Analyses:

The reports are graded for both content and report presentation. The purpose behind each case is to use the tools, concepts, and techniques studied to help the organization make a business decision.

A good paper should clearly and succinctly state the recommendations in the first paragraph to set the stage for the reader. The questions listed on the case should be used as a guide to structure the report. Facts in the case need not to be restated unless they are used to make a specific point. The report should NOT be a Question & Answer format where each question is listed and answered. Instead, the report represents your analysis of the situation and the rationale for your recommendation.

The analysis to support your recommendation should consider the advantages and the potential pitfalls of adopting it. The analysis explains the “why” of your recommendation. In some cases, your rationale ad logic behind the analysis is more important than the course of action that you have selected. An adequate analysis is a time consuming and intellectually challenging task. Guided by the case questions, the objective is to evaluate a complete range of alternatives and discuss the consequences of your recommendation.

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