An example of how AFW has applied c

An example of how AFW has applied creative problem solving to reduce cost unfolds through its decision to build its own chairs, saving dramatically on freight costs. A
garden-variety hardwood dinette chair can be manufactured abroad and the pieces assembled at AFW for much less than the cost if it were shipped already assembled.
Typically, 1,000 assembled dinette chairs fit in a standardsize container. AFW buys 4,000 identical chairs in pieces and fits them in that same container. It pays its domestic workers roughly $2 per chair to assemble them and can sell each chair at retail for less than what other retailers pay for the same chair at wholesale.

Yet another manifestation of its creative solutions to cost-reduction: AFW takes delivery on blanket-wrapped merchandise rather than carton-wrapped. Not only are
the blankets reusable, but not putting the merchandise in cartons in the first place can save as much as 5 percent on the total purchase price. Once merchandise arrives at one of two distribution centers, it is placed into storage and samples are immediately shipped to the showrooms.

AFW makes it a policy not to return merchandise to a factory. If something is broken, its staff of 120 trained service technicians can repair just about any furniture problem
they may encounter, often for pennies. Because of its no-return policy, if it makes a buying error, AFW will mark down the item and not repurchase it. With no returns
to process, vendors sell to AFW for up to 15 percent less than to other retailers for that reason alone.

Artisans in Mexico make and sell accessories to AFW by the truckload. Recently, the accessories buyer was in Mexico at the invitation of the Mexican government. She
was advising a group of artisans on what to create to appeal to the Colorado market. Because AFW buys items in bulk, it saves up to 50 percent over what competitors pay for similar items. Jake Jabs would like to replicate this sort of activity in other product categories in other countries. He is pondering the best way to do this.

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An example of how AFW has applied creative problem solving to reduce cost unfolds through its decision to build its own chairs, saving dramatically on freight costs. A
Garden-Variety Hardwood dinette Chair Abroad Can be Manufactured and assembled the pieces at AFW much for Less than the cost if it were shipped already assembled.
Typically, 1,000 assembled in a dinette Chairs Fit Standardsize Container. AFW buys 4,000 identical chairs in pieces and fits them in that same container. Pays ITS domestic Workers roughly $ 2 per Chair to Assemble them and Can sell each Chair at RETAIL for Less than What Other retailers pay for the Same Chair at wholesale. Yet another Manifestation of ITS Creative Solutions to cost-reduction: AFW Takes Delivery on Blanket. -wrapped merchandise rather than carton-wrapped. Not only are the reusable blankets, but not putting the merchandise in cartons in the First Place Can Save As much 5 percent on the total Purchase Price As. Once merchandise arrives at one of Two Distribution Centers, it is Placed into Storage and samples are immediately shipped to the showrooms. AFW Makes it a Policy not to Return merchandise to a Factory. If Something is Broken, ITS staff of 120 trained technicians Service About Can just any Furniture Repair Problem May they encounter, often for pennies. Because of its no-return policy, if it makes a buying error, AFW will mark down the item and not repurchase it. With no Returns to Process, vendors sell for up to 15 percent to AFW Less than to Other retailers Reason for that alone. Artisans in Mexico Make and sell accessories to AFW by the truckload. Recently, the accessories buyer was in Mexico at the invitation of the Mexican government. She was advising a Group of artisans to create on What to Appeal to the Colorado market. Because AFW buys items in bulk, it saves up to 50 percent over what competitors pay for similar items. Jake Jabs would like to replicate this sort of activity in other product categories in other countries. He is pondering the best way to do this.