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. QUESTION 3 Banda Supermarket sources bottled milk from three different major supplier, namely s1, s2 and s3. Banda manager has observed the annual demand
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QUESTION 3 Banda Supermarket sources bottled milk from three different major supplier, namely s1, s2 and s3. Banda manager has observed the annual demand and the ordering cost (common and specific ordering cost) from each supplier. The following table shows such data and other relevant data. Supplier Annual demand Annual interest rate (holding cost - % Unit cost per bottle ($) Common order cost ($) Supplier-specific order cost ($) s1 3000 20% 7 200 50 S2 3000 20% 7 200 50 S3 3000 20% 7 200 50 Banda is having only one truck to manage the transportation of the bottled milks from the suppliers to the supermarket. The manager is considering the following scenarios, i.e. supply from the three suppliers is: 1. aggregated with unlimited truck capacity 2. aggregated with truck capacity = 1500 bottles of milk. a. For each scenario above, determine (for each supplier): i. [1 Mark] The optimal order quantity ii. [0.5 Mark] The order frequency per year iii. [0.5 Mark] Order cycle time (month) iv. [1 Mark] Annual ordering cost [1 Mark] Annual inventory cost vi. [0.5 Mark] Total annual cost b. [0.5 Mark] Which scenario is recommended for the Banda manager? Why
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