Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 480 units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per unit per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the what is the total annual cost of the best option including purchasing cost
Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 480 units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per unit per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the what is the total annual cost of the best option including purchasing cost
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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