Question: Question 2: Metro Tech buys three components from a local wholesaler. The annual demand for components A,B, and C is 500,3000 , and 6000 units

Question 2: Metro Tech buys three components from a local wholesaler. The annual demand for components A,B, and C is 500,3000 , and 6000 units respectively. The agreed purchase price is $20,$15, and $10 per unit for A,B, and C respectively for each product. The holding cost is estimated to be 20% per year. The ordering cost consists of handling and trucking costs. The handling cost is $100 for each type of component regardless of the number of items ordered. In addition to the handling cost, Metro Tech must pay a trucking cost of $500 for each delivery regardless of the total number of components in the order. Currently, all three items are being ordered independently using EOQ models. A proposal has been made to combine the ordering of the three items to save on trucking costs. Analyze the current and the prosed scenario and show the results below. Input Data: Current Scenario Analysis (Independent ordering): Proposed Scenario Analysis (Joint ordering): Total cost savings due to ordering jointly: Can you estimate the total savings in trucking costs? Why is this different from total savings
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