DirtCo sells and distributes quality dirt to dirt connoisseurs…
Question Answered step-by-step DirtCo sells and distributes quality dirt to dirt connoisseurs… DirtCo sells and distributes quality dirt to dirt connoisseurs across the world. The monthly demand for your most popular variety, Cambridge Red, is very stable at 12,000 pounds. You order this item from an outside vendor, Muck Inc. The cost of placing an order is $30 and the material costs you $10 per pound. The annual holding cost rate of is estimated at 15%What is your order size for your orders of Cambridge Red? Round to the nearest integer value. Part 1. How many orders do you expect to place over a year? Part 2. What is your order cycle time, i.e. number of days between orders? Assume 365 days in a year and enter with two significant digits. For example, if your answer is 1.597 then enter 1.6. Part 3. What is the annual total relevant cost for this inventory policy? Round to the nearest integer and do not enter the dollar sign. Part 4. Suppose Muck Inc. is now offering a volume discount program. If you order at least 4000 pounds of Cambridge Red, then the price for the entire order quantity drops to $9.25 per pound. (Hint, this is an all units discount) Part 5. What do you recommend your new economic order quantity to be? Round to the nearest integer value. Engineering & Technology Industrial Engineering Supply Chain Management SUPPLY CHA 6302 Share QuestionEmailCopy link Comments (0)
