Andre Candess manages an office supply store. One product in the store is computer paper.
Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year.
There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is
$30, while the holding cost is $15 per box per year. If he orders in batches of 500 boxes at a
time, what is his annual holding cost?
Solution
Annual Holding Cost = Average inventory*Holding cost per box per year.
Annual Holding Cost = (10000/2) *15
Annual Holding Cost = 5000*15 = 75000..
Bloomberg Case in the News, Microsoft Pays $26 Billion for LinkedIn .pdf
1. Bloomberg Case in the News, Microsoft Pays $26 Billion for LinkedIn in Biggest Deal Yet
Using the information in the article alone, how do you believe Microsoft is currently organized?
Solution
Microsoft acquired LinkedIn in a deal that was biggest in the technology industry. It has helped
the company enter into the social media that can serve multiple purpose to the company. It will
not only help the Microsoft to promote their in-house products & service to the qualified user
base, but also it will identify the candidates suitable for different projects. Besides, it will also
serve the function of customer relationship management. In this way, the Microsoft is organized
into the different business vertical such as cloud computing, windows & office solutions and
computing among the others. Here, each business vertical serves the objectives of other verticals
also. It means that one vertical is utilizing internal resources to come out with their own products
and services. It is also with social media vertical with the acquisition of LinkedIn.
Moreover, there is an autonomy in decision making and process implementation as it is the case
with the LinkedIn is having its own team, process originality and cultural autonomy despite the
acquisition. These verticals are under the umbrella structure of the company Microsoft.