Wheeled Coach purchases components from three suppliers. Components purchased from Supplier A are priced at $9 each and used at the rate of 20,000 units per month. Components purchased from Supplier B are priced at $20 each and are used at the rate of 2,500 units per month. Components purchased from Supplier C are priced at $23 each and used at the rate of 900 units per month. Currently, Wheeled Coach places orders with each supplier separately. Wheeled Coach is deciding whether to aggregate purchases from the three suppliers. The trucking company charges a fixed cost of $5,000 for the truck with an additional charge of $1,000 for stopping at each supplier; e.g. if the truck stops at only one supplier the trucking company charges $6,000 whereas it charges $8,000 if it stops at all three suppliers.

Assume a holding cost of 30% per year.

Round all entries to 2 decimal places.

b) Compute the optimal order frequency if Wheeled Coach jointly orders all three components whenever it hires a truck such that the fixed order cost is $8000 and the truck always stops at all three suppliers.

Optimal order frequency with joint orders: Answer orders per year.

Total annual relevant cost when all three components are ordered jointly $Answer.

Compute the savings in total annual relevant cost from ordering jointly. If ordering jointly increases the total annual cost enter $0 in savings.

Answer rating: 100% (QA)

Sr NO A B C Total Yearly 1 Per Unit Price 9 20 23 2 Units 20000 2500 900 23400 280... View the full answer