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Determine the Economic Order Quantity (EOQ) for both suppliers. Determine the Reorder Point for both suppliers. Determine the Total Inventory Cost (TIC) for both suppliers without safety stock.

Determine the Total Inventory Cost (TIC) for both suppliers with safety stock.

Determine through a Sensitivity Analysis which component(s) of TIC are most

sensitive to change (which produce the greatest change in TIC) .

Your Mexican supplier has heard a rumor that you are considering changing

suppliers. In order to incent you to continue to order from them, they have offered

you a 2% discount on all orders provided that you order at least 2,000 units with each

order.

Determine Total Inventory Cost (TIC) for the Mexican supplier given the

discount and maintaining ten (10) days of safety stock.

Make a recommendation as to which manufacturer to choose, and whether you

recommend using safety stock in your inventory management process.