Question: BZoom sells toy bricks that can be used to construct a wide range of machines, animals, buildings, and so on . It purchases a red
BZoom sells toy bricks that can be used to construct a wide range of machines, animals, buildings, and so on It purchases a red dye powder to include in the resin it uses to make the bricks. The powder is purchased from a supplier for $ per kg At one production facility, BZoom requires kg of this red dye powder each week. BZoom's annual holding costs are percent, and the fixed cost associated with each order to the supplier is $
a How many kilograms should BZoom order from its supplier with each order to minimize the sum of the ordering and holding costs?
b If BZoom orders kg at a time, what would be the sum of the annual ordering and holding costs?
c If BZoom orders kg at a time, what would be the sum of the ordering and holding costs per kilogram of dye?
d If BZoom orders the quantity from part that minimizes the sum of the ordering and holding costs, what is the annual cost of the EOQ expressed as a percentage of the annual purchase cost?
e BZoom's purchasing manager negotiated with its supplier to get a percent discount on orders of or greater? What would be the change in BZoom's annual total cost purchasing ordering, and holding if it took advantage of this deal instead of ordering smaller quantities at the full price?
i It would decrease by more than $
ii It would decrease by less than $
iii. It would increase by less than $
iv It would increase by more than $
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