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The company Komponenten AB buys 200,000 circuit boards a year from a subcontractor. The purchase price for the circuit boards amounts to SEK 120 each
The company Komponenten AB buys 200,000 circuit boards a year from a subcontractor. The purchase price for the circuit boards amounts to SEK 120 each and the special order cost amounts to SEK 1,600 per purchase occasion. The company's discount rate is 10% and there are no other special costs for capital tied up in inventories.
Assume that the company buys circuit boards once a month (12 purchases per year). How much can the company earn by changing the purchasing frequency to twice a month (24 purchases per year)? Show your calculations!
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