Question: Parker s purchasing agent, Raktim Pal, submits an order release for LCD screens once every 4 weeks. The company s annual requirements total 5 0

Parkers purchasing agent, Raktim Pal, submits an order release for LCD screens once every 4 weeks.
The companys annual requirements total 500 units (2 per working day), and Parkers per unit cost is
$1,500.(Because of Parkers relatively low volume and the quality focusrather than volume focus of
many of Parkers suppliers, Parker is seldom able to obtain quantity discounts.) Because Foxy promises
delivery within 1 week following receipt of an order release, Parker has never had a shortage of LCDs.
(Total time between date of the release and date of receipt is 1 week or 5 working days.)

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