Q1: You should start with an overview of the case and provide clear answers to the case discussion questions in its order. You need to demonstrate understanding of the key issues in the case. The analysis and recommendations must be supported by case facts; assumptions must be reasonable and clearly stated.
Questions:
What is Startech.com’s supply chain strategy? What is the company’s current inventory to sales ratio? What is the target the company would like to achieve?
Using Exhibits 4 & 5, calculate the safety stock for each warehouse (Decentralized model) and the central warehouse (Centralized model). Assuming inventory cost is 75% of the selling price, calculate the inventory investment in the safety tock for all the SKUs.
As Jeff Brodie, what alternatives would you consider? Be prepared to discuss the advantages and disadvantages of each alternative.
Q2: Using Exhibits 4 & 5, calculate the safety stock for each warehouse (Decentralized model) and the central warehouse (Centralized model). Assuming inventory cost is 75% of the selling price, calculate the inventory investment in the safety tock for all the SKUs.
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