Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation. Yeast & Brewery Company Quantity Unit Price 1-399 400-899 900+ $16.91 $16.23 $15.69 Crust n Krumbs Company Quantity 1-499 500-999 1000+ Unit Price $16.23 What is the optimal order quantity? [Select] $15.91 $15.69 What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units [Select] Which supplier, based on all options with regard to discounts, should be used? [Select] What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [Select]
Ashlee recently joined Bimbo Bakeries USA as VP Purchasing, and decided to go out on bid for a strategic ingredient. Expected demand is 1,300 lbs. per month. The item can be purchased from either Yeast & Brewery Company, or Crust n Krumbs Company. Their price lists are shown in the table. Ordering cost is $25.23, and annual holding cost per unit is $13.95 (fixed amount), these are internal costs to Bimbo. Inventory Model used annual demand for calculation. Yeast & Brewery Company Quantity Unit Price 1-399 400-899 900+ $16.91 $16.23 $15.69 Crust n Krumbs Company Quantity 1-499 500-999 1000+ Unit Price $16.23 What is the optimal order quantity? [Select] $15.91 $15.69 What is the Economic Order Quantity (EOQ) if price is not a consideration, round to whole number? Units [Select] Which supplier, based on all options with regard to discounts, should be used? [Select] What is the total annual cost of ordering, inventory holding, and purchasing the strategic ingredient, round to whole number? [Select]
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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