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The supplier of the TS 500 has offered to ship the part at a rate of 100 per day during shipping periods via the supplier's

The supplier of the TS 500 has offered to ship the part at a rate of 100 per day during shipping periods via the supplier's own truck and IPC's plant works 300 days per years. If all other data in remains the same: 


a. How many parts should be ordered when the T8500 is replenished? 


b. What annual saving will come to IPC if the new shipping policy is enacted?

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Given data Demand D 500 units per day Lead time LT 5 days Ordering cost S 200 Holding cost H 10 per ... blur-text-image

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