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Exercise 0.2.3 MPC is a manufacturer of personal computers. All Its personal computers use 80GD hard cisk. The company requires 6,000 units of the BOGB
Exercise 0.2.3 MPC is a manufacturer of personal computers. All Its personal computers use 80GD hard cisk. The company requires 6,000 units of the BOGB disk each year. Currently MPC obtains the 80GB hard disk from a supplier on a regular monthly basis at RM250 per unit. The ordering cost for each order has boon estimated at RM1 75. Recently, another supplier offered to supply 80GB disk drives at the price of PM235 per unit However. MPC must order a minimum of 1500 units per order. The cost to place an order from this supplior is RM200. Whichever supplier to be used, the storage cost is RM2 per unit per annum based on the average annual stock. Assume certainty of demand, lead time, and costs. (a) Calculate the total inventory cost for the 80GB hard disks based on the present ordering policy
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