In a medical device plant in PR, a semi-assembled part called ME-CGV is used for a device used in the heart of patients. Your monthly usage is 10,000 pieces, each piece costs $30, and the inventory rate on your costs is 15%. Costs per order are $300 and the manufacturer's lead time is 0.5 months. But if a container of parts containing 24,000 units is ordered from the manufacturer, the cost (purchase price) would drop to $27. The lead time increases by the quantity to 1.25 months and also the ordering cost would increase to $400. Consider that the working days are 250 days/year.

Answer the following questions:

4. What would your Annual Order Cost (AOC) be when it comes to buying at the discount?

5. What would your Annual Holding Cost (AOC) be when it comes to buying at the discount?

6. What is the annual Total Cost of the PR medical supply plant, for this discount proposed by the manufacturer?