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Week 3 Case #5
Team Assignment
Using Excel and the data provided in the case, work in your teams to respond to the actions presented:
- Develop a way to estimate the holding, transaction (or fixed), and backorder costs.
- Discuss the relationship between service level and shortage costs. How can this relationships be established quantitatively.
- Develop a system that involves the continuous review approach for the inventory management. Use the example provided.
- Give an overall recommendation and next steps
- Discuss other areas of savings.
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