Question: Question 3. A warehouse purchases components from three suppliers. Components purchased from Supplier A are priced at $5 each and used the rate of 18000

Question 3. A warehouse purchases components from
Question 3. A warehouse purchases components from three suppliers. Components purchased from Supplier A are priced at $5 each and used the rate of 18000 units per month. Components purchased from Supplier Bare priced at $4 each and are used at the rate of 3400 units per month. Components purchased from Supplier C are priced at $5 each and used at the rate of 2000 units per month. Currently the warehouse purchases a separate truckload from each supplier. If he decides to aggregate purchases from the three suppliers, the trucking company charges a fixed cost of $400 for the truck with an additional charge of $100 for each stop. Thus, if the warehouse asks for a pickup from only one supplier, the trucking company charges $500. Assuming a 20% monthly interest rate, a) Suggest a replenishment strategy for the warehouse that aggregates all three items in a single order. b) Compare the cost (ordering+holding+material) of your strategy with the warehouse's current strategy of ordering, c) Compare the cycle inventory under two strategies and comment on how the cycle inventories have changed for each item. Question 3. A warehouse purchases components from three suppliers. Components purchased from Supplier A are priced at $5 each and used the rate of 18000 units per month. Components purchased from Supplier Bare priced at $4 each and are used at the rate of 3400 units per month. Components purchased from Supplier C are priced at $5 each and used at the rate of 2000 units per month. Currently the warehouse purchases a separate truckload from each supplier. If he decides to aggregate purchases from the three suppliers, the trucking company charges a fixed cost of $400 for the truck with an additional charge of $100 for each stop. Thus, if the warehouse asks for a pickup from only one supplier, the trucking company charges $500. Assuming a 20% monthly interest rate, a) Suggest a replenishment strategy for the warehouse that aggregates all three items in a single order. b) Compare the cost (ordering+holding+material) of your strategy with the warehouse's current strategy of ordering, c) Compare the cycle inventory under two strategies and comment on how the cycle inventories have changed for each item

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