Given the information provided below for Rockland, Inc., use the Total Supply Chain Cost Excel template in MindTap to compute the costs associated with the supply chain. The order quantity is Q = 11,000 units, and the supply chain operates 250 days per year. Annual Price per Demand (D) Unit (P) $7.85 Transport Cost per Unit (Ct) $4.70 132,000 Oversight Cost per Unit (O) One Year (Ch) Days (L) $0.25 $9.60 What if the supplier asks you to increase your order quantity to 22,000 units for a price discount of one percent, would you accept the new deal? Do not round intermediate calculations. Round your answers to the nearest dollar. 11,000 units 22,000 units Cost to Store Order Cost One Unit (Co) $160 Order Lead Time in $ $ $ $ 10 Order quantity: Total procurement cost: $ Total management oversight cost: $ Total annual transportation cost: $ Annual order cost: $ Annual holding cost: $ $ Average annual pipeline inventory cost: $ $ Total supply chain costs: $ $ If the supplier increases the order quantity to 22,000 units for a price discount of one percent, the total supply chain costs would -Select-increasedecreaseltem 15, so you should -Select-acceptrejectltem 16 the new deal.

Given the information provided below for Rockland, Inc., use the Total Supply Chain Cost Excel template in MindTap to compute the costs associated with the supply chain. The order quantity is Q = 11,000 units, and the supply chain operates 250 days per year. Annual Price per Demand (D) Unit (P) $7.85 Transport Cost per Unit (Ct) $4.70 132,000 Oversight Cost per Unit (O) One Year (Ch) Days (L) $0.25 $9.60 What if the supplier asks you to increase your order quantity to 22,000 units for a price discount of one percent, would you accept the new deal? Do not round intermediate calculations. Round your answers to the nearest dollar. 11,000 units 22,000 units Cost to Store Order Cost One Unit (Co) $160 Order Lead Time in $ $ $ $ 10 Order quantity: Total procurement cost: $ Total management oversight cost: $ Total annual transportation cost: $ Annual order cost: $ Annual holding cost: $ $ Average annual pipeline inventory cost: $ $ Total supply chain costs: $ $ If the supplier increases the order quantity to 22,000 units for a price discount of one percent, the total supply chain costs would -Select-increasedecreaseltem 15, so you should -Select-acceptrejectltem 16 the new deal.

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

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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Especially for wholesalers and retailers involved in the distribution channels for consumer packaged goods, inventory management is a careful balancing act between: supply and demand. controlled supply and variable demand. lower inventory levels and acceptable customer service levels. variable inventory levels and consistent customer service levels.
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