Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
help asap please the total landed cost with the order quantitu size of 6,000 units is the total landed cost with the bulk ordering quantity
help asap please
the total landed cost with the order quantitu size of 6,000 units is the total landed cost with the bulk ordering quantity of 9,000 units is based on the landed cost tradeoff calculations the company should choose the A supplier to your company has offered you a reduced price per unit on a component if you agree to purchase the component in higher order quantities. Currently, you order 6,000 units each time an order is placed for the component, and you pay $10.50 per unit. Your ordering costs are estimated to be S126 per order regardless of the order size. Transportation costs are estimated to be $0.90 per unit. Your cost to hold a component part in inventory is estimated at 14% annually based on the cost of the purchased item. The supplier has offered you a cost of $10.20 per unit if you increase your purchasing quantity to 9,000. Currently, your company purchases 126.000 of these components annually, and this total demand is expected to remain constant for the foreseeable future. Should you continue with your current policy, or should you take the incentive offered by the supplier
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668d154611a9b_053668d1545b3709.jpg)
the total landed cost with the order quantitu size of 6,000 units is
the total landed cost with the bulk ordering quantity of 9,000 units is
based on the landed cost tradeoff calculations the company should choose the
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started