Question: Upon hearing that Ross White ( see problem 6 - 2 7 and 6 - 2 8 ) is considering producing theb rackets in house,
Upon hearing that Ross White see problem and is considering producing theb rackets in house, the vendor has notified Ross that the purchase price would drop from $ per brack to $ per bracket if Ross would purchase the brackets in lots of Lead times, however, would increase to days for this larger quantity.a What is the total annual inventory cost plus purchase cost if Ross buys the brackets in lots of at $ each?b If Ross does buy in lots of brackets, what is the new ROP?c Given the options of purchasing the brackets at $ each, producing them inhouse at $ and taking advantage of the discount, what isyour recommendation to Ross White?
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