Montessori Approach
August 7, 2017Secular vs. Biblical Approach to Special Education
August 7, 2017
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Inventory Control Models – Question 29 |
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| 29) |
Upon hearing that Ross White (see Problems 27 and 28) is considering producing the brackets in-house, the vendor has notifies Ross that the purchase price would drop from $15 per bracket to $14.50 per bracket if Ross will purchase the brackets in lots of 1,000. Lead times, however, would increase to 3 days for this larger quantity. |
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| (a) |
What is the total annual inventory cost plus purchase cost if Ross buys the brackets in lots of 1,000 at $14.50 each? |
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| (b) |
If Ross does buy in lots of 1,000 brackets, what is the new ROP? |
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| (c) |
Given the options of purchasing the brackets at $15 each, producing them in-house at $14.80, and taking advantage of the discount, what is your recommendation to Ross White? |
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