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 6-27 and 6-28) is considering producing theb rackets in house, the vendor has notified Ross that the purchase price would drop from $15 per brack to $14.50 per bracket if Ross would purchase the brackets in lots of 1,000. Lead times, however, would increase to 3 days for this larger quantity.(a) What is the total annual inventory cost plus purchase cost if Ross buys the brackets in lots of 1,000 at $14.50 each?(b) If Ross does buy in lots of 1,000 brackets, what is the new ROP?(c) Given the options of purchasing the brackets at $15 each, producing them in-house at $14.80, and taking advantage of the discount, what isyour recommendation to Ross White?

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