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Suppose you work for a furniture manufacturer, one of whose products is the chair depicted in Figure 12. Finished goods inventory is held in a...

Suppose you work for a furniture manufacturer, one of whose products is the chair depicted in Figure 12.5. Finished goods inventory is held in a central warehouse in anticipation of customer orders. Finished goods are controlled using EOQ/ROP methods. The warehouse manager, Juan Villa, has suggested using the same methods for controlling component inventory. Write him a brief memo outlining your opinion on doing that.

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