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Chapter 12, Problem 28, page 522. I am inserting vendor prices so that you solve the right problem. Please solve the problem and answer the
Chapter 12, Problem 28, page 522. I am inserting vendor prices so that you solve the right problem. Please solve the problem and answer the following questions Vendor 1 Quantity Price 1-499 $17.00 500-999 $16.75 1000+ $16.50 Vendor 2 Quantity Price 1-399 $17.10 400-799 $16.85 800-1199 $16.60 1200+ $16.25 QUESTION 1 What is EOQ for each supplier? EOQ for Vendor 1 is and for Vendor 2 is QUESTION 2 What is annual holding cost if your order quantity is 500 lbs per order from vendor 1, what is annual ordering (set up) cost? What is average cycle inventory? annual holding cost dollars, annual ordering (set up) cost dollars Average cycle inventory lbs QUESTION 3 What quantity should be ordered and which supplier should be used? What is total annual cost for the best order quantity? lbs should be ordered from supplier Total annual cost for this order quantity is dollars QUESTION 4 If you buy from vendor 1 EOQ is 341.12 lbs with the cheapest price. Why you did not order this quantity from vendor 1? TT T Arial 3 (12pt) T. 29 Path:p Words:0 12.28 Emery Pharmaceutical uses an unstable chemical com- pound that must be kept in an environment where both tempera- ture and humidity can be controlled. Emery uses 800 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be S50 per order. The cost schedules of two suppliers are as follows
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