(Solution) - Spring Distribution has expanded its operations into a number of -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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Spring Distribution has expanded its operations into a number of different soft drinks. It has classified its warehousing activities into the following steps (the steps are scrambled and not in the sequence performed):



Required:
a. Suppose Spring Fresh staffs its warehouse with a five-person team. Average annual salary is $32,000, based on 2,000 hours per person. Compute the cost of unused capacity.
b. Suggest actions that might help Spring Distribution manage its warehousing costs. You might wish to begin rearranging the steps into a logical flow and then rating each activity on a 1- to 5-point scale with 5 being the highly valued and 1 as non-value-adding. Generate an estimate of possible costsavings.