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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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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