Question: QUESTION 10 [Figure 11] You are considering whether to source a chemical from Korea or from a local supplier in U.S. You use this chemical

QUESTION 10 [Figure 11] You are considering
QUESTION 10 [Figure 11] You are considering whether to source a chemical from Korea or from a local supplier in U.S. You use this chemical at the rate of 5000 liters per year. Your U.S. supplier charges $5 per liter. Whenever you order from your U.S. supplier, there is a fixed order and transportation cost of $400. The Korean supplier charges $4.50 per liter but the fixed order and transportation cost is $2000. You use a 20% interest rate. Assume that the quality of the product is equivalent between the two suppliers, and that the sourcing decision is being made on materials and inventory cost alone. Figure 111 Compute the optimal inventory policy (E02) to be used it you order from the US supplier 1500 2000 3000 4000 None of the above QUESTION 11 [Figure 11) Compute the optimal inventory policy (EOC) to be used if you order from the US supplier from a Korean supplies

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!