Cases in Cost Management 3rd Edition by John Shank

تمرين 3

For question 1, assume question 4 is really feasible if the mill were to believe it is possible.
Suppose Montclair changed its distribution strategy to streamline DC operations and eliminate inventory at the merchant. Then, the merchant would treat Montclair products as "mill direct" items rather than "stocking" items. How would this change in the "value chain" affect the mill target cost for the product described in the case So what
Suggested numerical answers to questions 2, 3 and 4 are attached here to facilitate your preparation for the class discussion.