Question: USE EXCEL AND SHOW FORMULAS FOR THE FOLLOWING PROBLEM: In a medical device plant, a semi-assembled part called ME-CGV is used for a device used
USE EXCEL AND SHOW FORMULAS FOR THE FOLLOWING PROBLEM: In a medical device plant, a semi-assembled part called ME-CGV is used for a device used in the heart of patients. His monthly usage is 10,000 pieces, each piece costs $30, and the inventory rate on his costs is 15%. The costs per order are $300 and the manufacturer's lead time is 0.5 months. But if a container of parts containing 24,000 units is ordered from the manufacturer, the cost (purchase price) would be reduced to $27. The delivery time increases by the quantity to 1.25 months and also the order cost would increase to 400 dollars. Consider that the working days are 250 days/year. Answer the following questions: 1. What should your order amount be based on the EOQ? 2. Calculate the total annual costs under normal ordering conditions. 3. What is the total cost if they order the largest volume accepting the quantity discount? 4. What would be your Annual Order Cost (AOC) when it comes to buying with the discount? 5. What would be your Annual Holding Cost (AOC) when it comes to buying at the discount? 6. What is the annual Total Cost of the medical supply plant, for this discount proposed by the manufacturer?
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