Given the information in Exhibit 13.13 for Rockland, Inc, use the Total Supply Chain Cost Excel template
Question:
Given the information in Exhibit 13.13 for Rockland, Inc, use the Total Supply Chain Cost Excel template to compute the costs associated with the supply chain. The order quantity is 20,000 units, and the supply chain operates 250 days a year. What if the supplier asks you to increase your order quantity to Q = 50,000 for a price discount of 2 percent, would you accept the new deal? Explain.
Transcribed Image Text:
EXHIBIT 13.13 Supply Chain Data for Rockland, Inc. Price per Unit (P) Oversight Cost per Unit (0) $6.41 $0.35 Annual Demand (D) 250,000 Transport Cost per Unit (C₂) $3.27 Order Cost (C) $200 Cost to Store One Unit One Year (C₂) $8.20 Oder Lead Time in Days (L) 20
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Related Book For
Operations And Supply Chain Management
ISBN: 9780357131695
2nd Edition
Authors: David A. Collier, James R. Evans
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