Question
Yellow Jacket Foods most popular item is organic mustard. Demand is600 jars a month. The firm's current vendor charges $3.00 a jar. Holding cost is
Yellow Jacket Foods most popular item is organic mustard. Demand is600 jars a month. The firm's current vendor charges $3.00 a jar. Holding cost is $.35 per unit and it costs $100 to place an order for more jars of mustard. A new supplier (but with same order cost) has offered to sell the same item to Yellow Jacket Foods for $2.80 a jar if Yellow Jacket foods buys at least 3,000 jars each order. If the firm wants to minimize annual inventory and product cost, what should Yellow Jacket Foods do?
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Operations Management Processes And Supply Chains
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
13th Global Edition
129240986X, 978-1292409863
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