Procurement cost: $ Oversight cost: $ Transportation cost: $ Order cycle cost: $ Inventory holding cost: $ Pipeline invenory cost: $ Total supply chain costs: $
Procurement cost: $ Oversight cost: $ Transportation cost: $ Order cycle cost: $ Inventory holding cost: $ Pipeline invenory cost: $ Total supply chain costs: $
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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Question
Given the information provided below, what are the procurement, oversight, transportation, order cycle inventory, pipeline inventory costs, and total supply chain costs for using the supplier Ebert, Inc. Ebert manufactures small speakers for automobiles in its factory in the Philippines. The order size is Q= 7,000 units and the supply chain operates 300 days a year. Do not round intermediate calculations. Round your answers to the nearest dollar.
Certified Supplier |
Annual Demand (D) |
Price per Unit (P) |
Oversight Cost per Unit (O) |
Transport Cost per Unit (Ct ) |
Order Cost (Co ) |
Cost to Store One Unit One Year (Ch ) |
Order Lead Time in Days (L) |
Elbert, Inc. | 224,000 | $6.99 | $0.22 | $2.38 | $140 | $5.39 | 55 |
Procurement cost: | $ |
Oversight cost: | $ |
Transportation cost: | $ |
Order cycle cost: | $ |
Inventory holding cost: | $ |
Pipeline invenory cost: | $ |
Total supply chain costs: | $ |
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