Question
Given the information provided below for Rockland, Inc., use the Total Supply Chain Cost Excel template in MindTap to compute the costs associated with the
Given the information provided below for Rockland, Inc., use the Total Supply Chain Cost Excel template in MindTap to compute the costs associated with the supply chain. The order quantity is Q = 11,000 units, and the supply chain operates 250 days per year.
Annual Demand (D) | Price per Unit (P) | Oversight Cost per Unit (O) | Transport Cost per Unit (Ct ) | Order Cost (Co ) | Cost to Store One Unit One Year (Ch ) | Order Lead Time in Days (L) |
132,000 | $7.85 | $0.25 | $4.70 | $160 | $9.60 | 10 |
What if the supplier asks you to increase your order quantity to 22,000 units for a price discount of one percent, would you accept the new deal? Do not round intermediate calculations. Round your answers to the nearest dollar.
Order quantity: | 11,000 units | 22,000 units |
Total procurement cost: | $ | $ |
Total management oversight cost: | $ | $ |
Total annual transportation cost: | $ | $ |
Annual order cost: | $ | $ |
Annual holding cost: | $ | $ |
Average annual pipeline inventory cost: | $ | $ |
Total supply chain costs: | $ | $ |
If the supplier increases the order quantity to 22,000 units for a price discount of one percent, the total supply chain costs would -Select-increasedecreaseItem 15 , so you should -Select-acceptrejectItem 16 the new deal.
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