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Amazon sells 20,000 units of consumer electronics from Samsung every month. Each unit costs $100 and Amazon has an annual holding cost of (20+Your Course
Amazon sells 20,000 units of consumer electronics from Samsung every month. Each unit costs $100 and Amazon has an annual holding cost of (20+Your Course ID) percent. The fixed clerical and transportation cost for each order Amazon places is $4,000.
On the other hand, to fulfill every order, Samsung incurrs a fixed cost of $2,000, and the unit production cost for Samsung is $50. Samsung has a holding cost of 30%.
1. What is the optimal size of the order that Amazon should place with Samsung? What is the total inventory holding and ordeirng cost for Amazon? (only include inventory holding cost and ordering cost) 2. With the optimal order size placed by Amazon, what is the total inventory holding and ordeirng cost for Samsung? What is the total supply chain cost? 3. In order to minimize the total supply chain cost for handling this product, What is the optimal ordering quantity (EOQ)? What is the total inventory holding and ordeirng cost for Samsung (based on the new EOQ)? \begin{tabular}{|l|l|} \hline Annual demand D= & \\ \hline & \\ \hline Supply chain ordering cost S= & \\ \hline Supply chain holding cost H= & \\ \hline & \\ \hline EOQ & \\ \hline & \\ \hline Annual SC holding cost = & \\ \hline Annual SC ordering cost = & \\ \hline Annual SC cost= & \\ \hline \end{tabular} (only include inventory holding cost and ordering cost) Samsung annual holding cost = Samsung annual ordering cost =Step by Step Solution
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