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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1552 |
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Appendix 1 shows the profiles of the MoonChem customers in this area. There are three customer types: small, medium, and large.
3.0 Current Strategy of MoonChem
In this section, the annual cost for the current strategy of sending only full truckloads to replenish each customer’s inventory is determined...
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The first step is to calculate the average monthly inventory each customer needs. Appendix 2 shows the inventory calculations of each customer type. These calculations are based on the Economic Order Quantity (EOQ) model that was first introduced in 1915 by Harris [3]. The following assumptions were made using an EOQ model:
1...
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