INVENTORY MANAGEMENT SHOW THE SOLUTION AND FORMULA USING EXCEL (ANSWER ITEM 2)

PROBLEM 1 REFERENCE:

2. Assume the same situation as in (a) of problem 1, with the added information that the ordering cost can be reduced from $60 to $15 per batch if the company joins a cooperative buying organization with annual membership fee of $2000. a. What would be the optimum order size if the company decided to join the cooperative buying organization? b. Should the company join the co-op? 1. The ABC Company uses 100,000 units per year of a product. The carrying cost per unit is $3 per year. The cost of ordering a batch is $60. a) What is the optimum order size? b) If the ordering costs were 60 cents per order, how many units should be ordered at one time? c) refer to (a). Suppose the ABC Company was offered a discount of 12 cents per unit by its supplier if it ordered in lots of 10,000 units. Should ABC take the discount