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Honda purchases components from three suppliers. Components purchased from Supplier A are priced at $3 each and used at the rate of 13,500 units per
Honda purchases components from three suppliers. Components purchased from Supplier A are priced at $3 each and used at the rate of 13,500 units per month. Components purchased from Supplier B are priced at $5 each and used at the rate of 2,500 units per month. Components purchased from Supplier C are priced at $6 each and used at the rate of 850 units per month. Honda has a holding cost of 20%. Suppose Honda has decided to aggregate purchases from the three suppliers and the fixed cost for each purchase is $800, how many times a year does Honda place orders (order frequency)? 8.8 13.2 9.23 2.69 9.34
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