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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