We have demand for a product with 1500 units/month. The vendor offers quantity discounted method for purchasing as the table below: Order Quantity condition 1 - 299 price( USD) 10 >= 300 price 7 Ordering lead-time is 3 days. Ordering cost 10 $/ order, salary for ordering staff is 3$/ order. Monthly Warcehouse renting free is 5%, and interest rate is 7%. Salary for warehousing staff is 300$/ month. Please suggest the best ordering policy.
We have demand for a product with 1500 units/month. The vendor offers quantity discounted method for purchasing as the table below: Order Quantity condition 1 - 299 price( USD) 10 >= 300 price 7 Ordering lead-time is 3 days. Ordering cost 10 $/ order, salary for ordering staff is 3$/ order. Monthly Warcehouse renting free is 5%, and interest rate is 7%. Salary for warehousing staff is 300$/ month. Please suggest the best ordering policy.
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...
Related questions
Question
We have demand for a product with 1500 units/month. The vendor offers quantity discounted method for purchasing as the table below: Order Quantity condition 1 - 299 price( USD) 10 >= 300 price 7
Ordering lead-time is 3 days. Ordering cost 10 $/ order, salary for ordering staff is 3$/ order. Monthly Warcehouse renting free is 5%, and interest rate is 7%. Salary for warehousing staff is 300$/ month. Please suggest the best ordering policy.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning