1. The management of Trader Joe’s is considering doubling the size of some of their stores and, therefore, doubling the size of their average inventory. Management is concerned that this will have a negative impact on their spectacular rate of inventory turns. As an operations analyst, how should you respond to this concern? Provide a numerical example to support your response.
2. A small printed-circuit board manufacturer has established itself on the ability to supply a large variety of small orders in a timely manner. A firm approaches the manufacturer to place a large order (equal to the current total volume from all other orders) but asks for a 30 percent discount. Do you think the circuit board manufacturer should accept the offer? Justify your answer.