Question: A TV-remote company purchases its plastic casing from an external supplier. The annual demand for TV remotes is 1,500,000 and their supplier requires a minimum
A TV-remote company purchases its plastic casing from an external supplier. The annual demand for TV remotes is 1,500,000 and their supplier requires a minimum order quantity of 100,000 plastic cases. Using the data below, and an assumed 250 operating days, what is the total supply chain cost for this item?
| Lead time (days) | 120 |
| Order cost per order | $ 315.00 |
| Holding cost per unit | $0.32 |
| Procurement cost/unit | $0.86 |
| Management oversight cost/unit | $0.06 |
| Unit transportation cost | $0.11 |
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