Question: *Untitled - Notepad File Edit Format View Help (b)Dell co sells both Product A and Product B, with sales of both products occurring evenly throughout

*Untitled - Notepad File Edit Format View Help

*Untitled - Notepad File Edit Format View Help (b)Dell co sells both Product A and Product B, with sales of both products occurring evenly throughout the year. Product A The annual demand for Product A is 300,000 units and an order for new inventory is placed each month. Each order costs RM267 to place. The cost of holding Product P in inventory is 10 cents per unit per year. Buffer inventory equal to 40% of one month's sales is maintained. Product B The annual demand for Product B is 456,000 units per year and Plot Co buys in this product at RM1 per unit on 60 days credit. The supplier has offered an early settlement discount of 1% for settlement of invoices within 30 days. Dell co finances working capital with short-term finance costing 5% per year. Assume that there are 365 days in each year. Compute the following values for Product A: i. The total cost of the current ordering policy; (6 marks) ii. The total cost of an ordering policy using the economic order quantity; (5 marks) iii. The net cost or saving of introducing an ordering policy using the economic order quantity. (2 marks) > Ln 24, Col 10 100% Windows (CRLF) UTF-8

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