The VENKA Beverages processes mineral water. The expected monthly demand 800 units. The products are expected...
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The VENKA Beverages processes mineral water. The expected monthly demand 800 units. The products are expected to be order from either supplier Z or supplier X. The ordering cost is charged at K40/order and the inventory carrying cost is K6 per unit. Prices are established by the following quantity discount schedule: 11. Quantity Price/per Unit 1-199 K4.00 Supplier Z 200-399 K3.80 400 + K3.60 1-149 K4.10 Supplier X 150-349 K3.90 350 + K3.70 Which of the above suppliers should be contracted, and what order quantity is optimal if the intent VENKA Beverages management is to minimize the total annual cost? Why is inventory necessary? The VENKA Beverages processes mineral water. The expected monthly demand 800 units. The products are expected to be order from either supplier Z or supplier X. The ordering cost is charged at K40/order and the inventory carrying cost is K6 per unit. Prices are established by the following quantity discount schedule: 11. Quantity Price/per Unit 1-199 K4.00 Supplier Z 200-399 K3.80 400 + K3.60 1-149 K4.10 Supplier X 150-349 K3.90 350 + K3.70 Which of the above suppliers should be contracted, and what order quantity is optimal if the intent VENKA Beverages management is to minimize the total annual cost? Why is inventory necessary?
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The VENKA Beverages processes mineral water The expected monthly demand 800 units The products are expected to be order from either supplier Z or supplier X The ordering cost is charged at K40order an... View the full answer
Related Book For
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date:
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