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What impact would have on inventory costs

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The 30,000 meters of fabric per year. Currently management orders 1,000 meters per order and the cost of each meter is $6. The ordering cost is $360 per order and carrying cost is $ 2.4 per meter. 3 weeks. The company operates 50 weeks per year.

Question a. Compute the total inventory costs under current plan?

Question b. Assuming no safety stock when TSP would make an order (reorder?

Question c. One supplier offers a discount of 1.5 percent per unit off the purchase price for orders in lots of 6,000 m. What impact would this have on inventory costs and should the order size be changed from

Reference no: EM132516417

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