What is the optimal replenishment policy for the supplier

Assignment Help Operation Management

Reference no: EM13784478

A retailer sells 5000 units of a product per month at a steady rate. The product is bought from the supplier at a wholesale price of $2.50 per unit. The administrative and logistical costs of placing and receiving an order amounts to $100. The annual holding cost rate at the retailer is 20%. The supplier can produce the product at a rate of 20000 units per month with a product cost of $1.20. The supplier has a fixed cost of $300 per order for setting up production. Annual holding cost rate at the supplier is 25%.

Without cooperation, what is the optimal replenishment policy for the retailer?

Without cooperation, what is the optimal replenishment policy for the supplier?

What is the optimal integrated lot size? What are the resulting ordering and holding costs for each player?

Reference no: EM13784478

Questions Cloud

The biopsychosocial or diathesis-stress models : Evaluate three peer reviewed research studies. Conceptualize the disorder using the biopsychosocial or diathesis-stress models.

Vision and mission statements issues : How might leaders and managers view and use vision and mission statements differently?

Differences between a void contract and a voidable contract : What are the differences between a void contract and a voidable contract? Provide examples. Which party or parties to a voidable contract have the right to disaffirm the contract

The environment and corporate social responsibility : Describe the relationship between packaging, the environment, corporate social responsibility, and logistics. you need to add the link or website of your source.

What is the optimal replenishment policy for the supplier : A retailer sells 5000 units of a product per month at a steady rate. The product is bought from the supplier at a wholesale price of $2.50 per unit. Without cooperation, what is the optimal replenishment policy for the retailer? Without cooperation, ..

What is her investment worth at the end of 25 months : What is her investment worth at the end of 25 months - how much interest did she earn and How much will Mr. Sparky have saved up in his account if he makes these deposits for20 years?

Assignment on expansion into a foreign market : Assignment on Expansion into a Foreign Market.

Brain and their associated psychological functions : What are the four lobes of the brain and their associated psychological functions?Provide an example of a behavior that is governed by one of the lobes, and discuss how damage to this lobe may affect this behavior. What can be done to minimize the..

Effective practices in community supervision (epics) model : Do you think probation officers should act as a treatment counselor as suggested by the Effective Practices in Community Supervision (EPICS) model? Are there any disadvantages of having probation officers act in this role

User Account

All Pages