From the course: Operations Management Foundations
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Key inventory decisions
From the course: Operations Management Foundations
Key inventory decisions
- Do you get your drinking water out of the faucet or do you buy bottled water? Let's say you buy bottled water. How do you buy it? Cases of 24 bottles? One gallon jugs? Or maybe you refill a five gallon container at a water station. Let's keep it simple and say you buy the one gallon jugs. How many would you buy at a time? Well, first you'd probably need to know how much water is needed at your house each day. Let's say your household goes through one gallon per day. Okay, now we know the demand. How many would you buy at a time? Five at a time, maybe seven. But why not get all the water you need at one time for the year? Why not get 365 gallons of water at once? Let's explore that really odd option. What would have to happen? Get to the store and grab a cart. Well, probably a convoy of carts. Pay for it. That'll hurt. Hundreds of dollars out of your pocket at once for some water that you won't drink for almost a…
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