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A manufacturer of automotive components purchases a particular part for use in its manufacturing process from a supplier for $ 7 0 . 7 per
A manufacturer of automotive components purchases a particular part for use in its manufacturing process from a supplier for $ per unit. The annual demand for the part is units per year. The manufacturer has estimated that the ordering cost is $ per order. The annual holding charge is percent of the unit purchase cost. The supplier has a lead time of days. Assume EOQ model is appropriate. The supplier gives a discount offer. The unit purchase cost will be discounted percent if the manufacturer uses the order quantity of units. What is the total annual inventory and purchasing cost if the manufacturer takes the discount offer?
Use at least decimal places.
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