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1. What is the annual inventory cost before postponement? 2. How would the inve

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1. What is the annual inventory cost before postponement?
2. How would the inventory cost change if postponement were implemented? Evaluate the change in inventory costs as the correlation coefficient of demand between any pair of customer varies from 0 to 0.5 to 1.0.
3. Should Fox postpone its labeling and packaging process to the DC? Would the answer change if the additional cost of labeling and packaging at the DC were reduced to $0.5 (from the current $1)?

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