Since 2019, Blue Cattle, the company's subsidiary located in Makassar ordered chicken feed Type A product...

 

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Since 2019, Blue Cattle, the company's subsidiary located in Makassar ordered chicken feed Type A product from Healthy Feedmill. Purchase was made every month and Blue Cattle usually ordered 300 tons every month. The order's carrying cost is currently IDR 10.000.000 and the fixed order cost is IDR 30.000.000. The Procurement Division of BC usually takes 15 days to place and receive an order and the company's production policy requires it to hold 500 tons as safety stock to prevent against stockouts. (Assume a 360-day year). Required: a) Determine and evaluate whether Blue Cattle has followed an economically advisable strategy? Complete your calculation with supporting detail argument. (10 points). b) Determine the reorder point that must be set by the company. (5 points). Since 2019, Blue Cattle, the company's subsidiary located in Makassar ordered chicken feed Type A product from Healthy Feedmill. Purchase was made every month and Blue Cattle usually ordered 300 tons every month. The order's carrying cost is currently IDR 10.000.000 and the fixed order cost is IDR 30.000.000. The Procurement Division of BC usually takes 15 days to place and receive an order and the company's production policy requires it to hold 500 tons as safety stock to prevent against stockouts. (Assume a 360-day year). Required: a) Determine and evaluate whether Blue Cattle has followed an economically advisable strategy? Complete your calculation with supporting detail argument. (10 points). b) Determine the reorder point that must be set by the company. (5 points).

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