The Gogo telecommunications company is the exclusive importer and marketer of the smart chip YU.
The demand for a fixed product is around 24000 units per year.
The annual interest rate is 10%.
The company is working on a policy whereby the lack is prohibited.
The company usually purchases the product from the supplier located in India at a cost of 480 per

It turns out that the Chinese supplier's production capabilities are limited and therefore able to supply 12000 products a year.
The company decided to combine the suppliers as follows: In each cycle two orders will be placed from both suppliers. At the beginning of the cycle, 6,000 units will be shipped from the Indian supplier. Once the inventory is depleted, a shipment of 6000 units will arrive from the Chinese supplier and so on.

The company heard of another supplier located in China. This provider sells the product at 450 per unit. The shipping cost from China to America is 15000

a. Draw the inventory behavior as a function of time

b. Does this solution address the constraints placed by both suppliers?

c.  Calculate the total annual cost of this policy.

Answer rating: 100% (QA)

a Draw the inventory behavior as a function of time The inventory behavior of the Gogo telecommunications company as a function of time can be represe... View the full answer