It customized its supply chain software to analyze

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Unformatted text preview: The tea company mixes a variety of basic teas from different vendors to make its own tea blends. It customized its supply chain software to analyze the worldwide availability and cost of the basic teas. Then the program factors in Lipton’s current inventory of the teas and determines the optimal blending option. In just the first year of its use, supply chain software saved Lipton $3 million. Sources: Brian Milligan, “Supply Chain Software Moves to the Web,” Purchasing (April 6, 2000), downloaded from www.; Alexei Oreskovic, “Never Break the Chain,” The Industry Standard (July 2, 2001), downloaded from www.; and “Yahoo Market Guide—Dell Computer Corporation,” Yahoo! Finance, downloaded from com/p/d/dell.html. sonal peaks occur. The conservative strategy avoids these risks through the locked-in interest rate and long-term financing, but it is more costly because of the negative spread between the earnings rate on surplus funds (5% in the example) and the cost of the long-term funds that create the surplus (8% in the example). Where the firm operates, between the extremes of the aggressive and conservative se...
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This document was uploaded on 01/19/2014.

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