Question: Need help with 3 and 4 im stuck on those A report of whether the company should continue to purchase the part from the supplier
Need help with and im stuck on those
A report of whether the company should continue to purchase the part from the supplier or begin to produce the part itself. Include the following factors in your report:
An analysis of the holding costs, including the appropriate annual holding cost rate.
An analysis of ordering costs, including the appropriate cost per order from the supplier.
A development of the inventory policy for ordering a fixed quantity from the supplier
Include the following in the policies of question :
a Optimal quantity
b Number of order or production runs per year
c Cycle time
d Reorder point
e Amount of safety stock
f Expected maximum inventory
g Average inventory
h Annual holding cost
i Annual ordering cost
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