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A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should
A company needs 1,000 widgets in Year 1 and projects that it will need 1,200 widgets in Year 2. The Year 1 order cost for widgets is $5, and the Year 1 carrying cost is S4. A recent contract renewal with the company's 3PL warehouse supplier will increase carrying costs in Year 2 to S6. How, if at all, will the Economic Order Quantity (EOQ) be affected?
XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take?