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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 incurs a fixed cost of $2,000, and the unit production cost for Samsung is $50. Samsung has a holding cost of 30%. (PLEASE SOLVE USING EXCEL AND SHOW FORMULAS). NOTE COURSE ID= 10
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? 2. With the optimal order size placed by Amazon, what is the total inventory holding and ordeirng cost for Samsung? What is 3. In order to minimize the total supply chain cost forhandling 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)Step by Step Solution
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