Directions: Answer the questions below. List three value-added services for a retailers’ warehouse. Explain the economic forces that are pushing more value-added processing onto the warehouses.  List the steps involved in return processing. Why is returns processing an important activity for modern warehouses?

Considering the nature of supply chain design, describe outsourcing processes. Also, what is the appropriateness of outsourcing relative to the make-buy decision and vertical integration as these concepts affect managing the overall supply chain.

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Andrew Manufacturing held an average inventory of $1.5 million (raw materials, work-in-process, finished goods) last year.  Its sales were $8.5 million, and its cost of goods sold was $6.2 million. The firm operates 290 days a year. What is the inventory days’ supply?  What target inventory level is necessary to reach a 15- and 10-day inventory days supply during the next two years?