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ATC 13-1 Business Application Case Analyzing inventory reductions at Supervalu Real-world companies often reduce the complexity of their operations in an attempt to increase prof- its. In late 2014 and early 2015 McDonald's Corporation announced a series of restructuring ef- forts it planned to undertake to improve profitability. One of these was to reduce the number of items offered for sale in its restaurants. In October 2014, General Motors announced plans to reduce the number of vehicle production platforms on which it builds cars from 26 to 4 by 2025. In 2010, Supervalu, Inc., one of the largest grocery store companies in the United States, announced it was planning to reduce the number of different items it carries in its inventory by as much as 25 percent. Most of the planned reduction in inventory items at Supervalu was going to be accomplished by reducing the number of different package sizes rather than by reducing entire product brands. The new approach was intended to allow the company to get better prices from its vendors and to put more emphasis on its own store brands. Required a. Identify some cost savings these companies might realize by reducing the number of items they sell or use in production. Be as specific as possible, and use your imagination. b. Consider the additional information presented as follows, which is hypothetical. All dollar amounts are in thousands; unit amounts are not. Assume that Supervalu decides to eliminate one

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