Using the book, "Supply Chain Logistics Management, 4th ed., read and review Case 11, on the dream Beauty Company. Answer these thee questions/problems. Support the math solution using excel.
1)Analyze the way that current costs are being allocated; what potential changes can you recommend to make the system more efficient and more accurate?
2)What is the profitability level and return on investment by distribution channel, under both the current and the recommended allocations?
3)What are your recommendations regarding the company policy of offering all its customers the same service level (three-day fulfillment cycle)?
Sample Solution