If the weeks of supply is 10 and the average aggregate inventory value is $1,000,000,
what is the cost of goods sold?
Answer:
Three distribution centers, A, B and C, are located at the following (X, Y) coordinates:
A, (20, 130); B, (180, 0); and C, (200, 200). A factory is to be constructed to distribute a
new product through these warehouses. The expected annual volumes expected to be
shipped through the three warehouses is forecast to be 20 million units through A, 100
million through B and 50 million through C. Using the centroid method, approximately
what should the coordinates of the new factory be?
Answer:
Explain why lean manufacturing requires a stable demand environment.