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Suppose that the peanut butter for the 300 daily peanut butter and jelly sandwiches is delivered once per week and one delivery costs $20 A week’s supply of peanut butter is valued at

Suppose that the peanut butter for the 300 daily peanut butter and jelly sandwiches is delivered once per week and one delivery costs $20. A week’s supply of peanut butter is valued at $100 and the cost of capital is 15 percent. Further suppose that the invoice for peanut butter is paid immediately. What would be the costs and benefits of delivering monthly, using VMI, where payment is made immediately upon use by Ajax?

May 18 2020 View more View Less

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