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Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300
Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation. Yeast & Brewery Crust n Krumbs Company Company Quantity Unit Price Unit Quantity Price 1-399 $16.91 1-499 $16.23 400-899 $16.23 500-999 $15.91 900+ $15.69 1000+ $15.69 What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units [Select] Which supplier, based on all options with regard to discounts, should be used? [Select] What is the optimal order quantity? [Select]
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