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Find the total inventory cost

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One of the major ingredients of the swiss roll is gluten-free flour. Usage of this flour average at 300 pounds per month. Tammy's Bakery is currently paying $3.40 for each pound; carrying cost is 20% of the unit cost; ordering cost is $25. A new supplier has offered the same product at $3 if Tammy's Bakery buys at least 2,400 pounds per order. Examine whether Tammy's Bakery should stick to the same supplier or take advantage of the quantity discount. Justify your answer with the appropriate calculations. (Hint: find the total inventory cost.)

Reference no: EM132708761

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