Question
Motor Company purchases components from three suppliers: Components from supplier Alpha costs $7 and are used at the rate 12,000 units/month Components from supplier Beta
Motor Company purchases components from three suppliers: Components from supplier Alpha costs $7 and are used at the rate 12,000 units/month Components from supplier Beta costs $5 and are used at the rate 6,500 units/month Components from supplier Gamma costs $3 and are used at the rate 1,800units/month. Motor Company is considering aggregating orders from all three suppliers. In addition to$500 fixed truck cost for deliveries with one pickup, the trucking company is charging $70 foreach additional pickup. What is the corresponding minimal annual cost? What is the cycleinventory of each component? Assume that the annual holding cost is 12 % of product cost (i.e., h=0.12)
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