Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Since 2019, Blue Cattle, the company's subsidiary located in Makassar ordered chicken feed Type A product from Healthy Feedmill. Purchase was made every month
Since 2019, Blue Cattle, the company's subsidiary located in Makassar ordered chicken feed Type A product from Healthy Feedmill. Purchase was made every month and Blue Cattle usually ordered 300 tons every month. The order's carrying cost is currently IDR 10.000.000 and the fixed order cost is IDR 30.000.000. The Procurement Division of BC usually takes 15 days to place and receive an order and the company's production policy requires it to hold 500 tons as safety stock to prevent against stockouts. (Assume a 360-day year). Required: a) Determine and evaluate whether Blue Cattle has followed an economically advisable strategy? Complete your calculation with supporting detail argument. (10 points). b) Determine the reorder point that must be set by the company. (5 points).
Step by Step Solution
★★★★★
3.47 Rating (163 Votes )
There are 3 Steps involved in it
Step: 1
Sdlutioni By using Given Intormation not following ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started