Question: QUESTION 3 (10 marks) a) Bernard's, distributor of three models of widgets, (A,B,C) has decided to aggregate and order all three models each time they

QUESTION 3 (10 marks) a) Bernard's, distributor
QUESTION 3 (10 marks) a) Bernard's, distributor of three models of widgets, (A,B,C) has decided to aggregate and order all three models each time they place an order (ordered and delivered jointly). The annual demand for the three products are 20000, 1500, and 100 units respectively. Each model costs the wholesaler four hundred dollars ($300). A fixed transportation cost of $4000 is incurred each time an order is delivered. For each model ordered and delivered, an additional fixed cost of $7000 is incurred for receiving and storage. Mr Bernard incurs a holding cost of 30 per cent. Determine the following: A 11 111 IV IV combined order cost per order optimal order frequency annual order cost Annual holding cost total annual cost across all three models STORYP (2marks) (2 marks) (2marks) (2 marks) (2 marks)

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!