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A TV-remote company purchases its plastic casing from an external supplier. The annual demand for TV remotes is 1,500,000 and their supplier requires a minimum
A TV-remote company purchases its plastic casing from an external supplier. The annual demand for TV remotes is 1,500,000 and their supplier requires a minimum order quantity of 100,000 plastic cases. Using the data below, and an assumed 250 operating days, what is the total supply chain cost for this item?
Lead time (days) | 120 |
Order cost per order | $ 315.00 |
Holding cost per unit | $0.32 |
Procurement cost/unit | $0.86 |
Management oversight cost/unit | $0.06 |
Unit transportation cost | $0.11 |
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