Question
Honda purchases components from three suppliers. Components purchased from Supplier A are priced at $3 each and used at the rate of 14,500 units per
Honda purchases components from three suppliers. Components purchased from Supplier A are priced at $3 each and used at the rate of 14,500 units per month. Components purchased from Supplier B are priced at $5 each and used at the rate of 3,000 units per month. Components purchased from Supplier C are priced at $6 each and used at the rate of 900 units per month. Honda has a holding cost of 20%. Suppose Honda has decided to aggregate purchases from the three suppliers and orders 12 times a year, what are the annual holding cost for carrying components from Suppliers A, B and C, respectively?
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