Determine the economic order quantity (EOQ) (Round up your answers to the nearest figure). а. b. Assuming a 300-day work year, how many orders should be processed per year and what is the expected time between orders? с. Calculate the total cost for the order. d. After several months of the introduction of the Exclusive Hijab, MHE decides to revise all costs related to their product due to the increment of hijab's costs by the supplier. MHE currently orders 1000 hijabs per month. The new information as regards to the Exclusive Hijab is as follows: i. The ordering cost for these is RM100 per order and ii. The carrying cost is assumed to be 40% of the per unit cost. The hijab's cost is RM78 per unit; however, if the order is 120 or more, the cost drops to RM50 per unit. Should MHE takes advantage of the quantity discount?
Determine the economic order quantity (EOQ) (Round up your answers to the nearest figure). а. b. Assuming a 300-day work year, how many orders should be processed per year and what is the expected time between orders? с. Calculate the total cost for the order. d. After several months of the introduction of the Exclusive Hijab, MHE decides to revise all costs related to their product due to the increment of hijab's costs by the supplier. MHE currently orders 1000 hijabs per month. The new information as regards to the Exclusive Hijab is as follows: i. The ordering cost for these is RM100 per order and ii. The carrying cost is assumed to be 40% of the per unit cost. The hijab's cost is RM78 per unit; however, if the order is 120 or more, the cost drops to RM50 per unit. Should MHE takes advantage of the quantity discount?
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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