A chain of grocery stores currently receives its stock on a decentralized basis. Each store deals independently with its suppliers. The president of the chain is wondering whether the firm can benefit from a centralized warehouse. What are the key considerations in making this decision?
A magazine publisher is trying to decide how many magazines she should deliver to each individual distribution outlet in order to maximize profits. She has extensive historical sales volume data for each of the outlets. How should she determine delivery quantities?
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