help please only need answer C - The Purchasing & Warehousing Manager identified two improvement projects in conjunction with herC.team:Project A: Reduction of ordering cost to $18.00.Project B: Reduction of holding cost to $1.50 per unit per year.Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Provide yourrecommendations. Problem #1 - Jasper Inc., a company that sells air conditioning units for cars intends to reduce its total annual inventorycost. The annual demand is between 6,500 units if market condition is unfavorable and 8,000 units if market conditionsare favorable. The Purchasing & Warehousing Manager estimates that the ordering cost is $20.50 per order and theholding cost is $1.50 per unit per year.- Calculate the Economic Order Quantity (EOQ), Annual Ordering Cost, Annual Holding Cost and Totala.Annual Inventory Cost under unfavorable and favorable market conditions.b.- If the probability for unfavorable and favorable market conditions is 35% and 65% respectively, calculatethe expected EOQ considering these probabilities.

Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.50 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Provide your recommendations.

Project A: Reduction of ordering cost to $18.00. Project B: Reduction of holding cost to $1.50 per unit per year. Which project would result in greater reduction of the EOQ and Total Annual Inventory Cost? Provide your recommendations.

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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