4 (4 points) My Kitchen Delight (MKD) is considering a new supplier for the jars used in the production process Assume the monthly demand averages 25000 jars Ordering cost is $30 per order Annual holding cost is 30 of the unit price The price list from a supplier is as follows Units Ordered Price Per Unit 1 2499 $2 80 2500 3499 $2 70 3500 4999 $2 60 5000 or more $2 50 Determine the most cost effective ordering quantity (3 points) What is the total cost for the order quantity determined in 1) (0 5 point) Describe inventory policy (0 5 point)

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Question: 4. (4 points) My Kitchen Delight (MKD) is considering a new supplier for the jars used in the production process. Assume the monthly demand averages

4. (4 points) My Kitchen Delight (MKD) is considering a new supplier for the jars used in the production process. Assume the monthly demand averages 25000 jars. Ordering cost is $30 per order. Annual holding cost is 30% of the unit price. The price list from a supplier is as follows:

Units Ordered			Price Per Unit
1-2499			$2.80
2500-3499			$2.70
3500-4999			$2.60
5000 or more			$2.50

Determine the most cost-effective ordering quantity (3 points)
What is the total cost for the order quantity determined in 1)? (0.5 point)
Describe inventory policy (0.5 point)

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