Whole Nature Foods sells a gluten-free product for which the annual demand is 5,000 boxes. At the

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Whole Nature Foods sells a gluten-free product for which the annual demand is 5,000 boxes. At the moment, it is paying \($6.40\) for each box; carrying cost is 25% of the unit cost; ordering costs are \($25.\) A new supplier has offered to sell the same item for \($6.00\) if Whole Nature Foods buys at least 3,000 boxes per order. Should the firm stick with the old supplier, or take advantage of the new quantity discount?

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Operations Management Sustainability And Supply Chain Management

ISBN: 234357

12th Edition

Authors: CHUCK MUNSON & AMIT SACHAN AND . JAY HEIZER , BARRY RENDER

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