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b) The Bern Hard Company has an assembly plant in Kingston and its parts plant in Montego Bay. Parts are transported from Montego Bay
b) The Bern Hard Company has an assembly plant in Kingston and its parts plant in Montego Bay. Parts are transported from Montego Bay to Kingston using trucks. Each shipment costs $150. The Kingston plant assembles and sells 400 finished products each day and operates 50 weeks a year, 5 days per week. Part # BH costs $60 and Bern Hard Company incurs a holding cost of 15 percent (6 marks) per year. i) ii) How many of part #BH should Be Hard Company put in each shipment? What is the cycle inventory of part #BH at Bern Hard Company? 111) Determine the total cost of the inventory.
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