CHAPTER 12 - 513.33 873.33 393.33 2,400 440 873.33 158.33...

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Value 1 4,000 2,000 2 8,000 4,000 25 400 3 12,000 6,000 50 800 4 16,000 8,000 75 1,200 5 20,000 10,000 100 1,600 6 24,000 12,000 125 2,000 7 28,000 14,000 150 2,400 8 32,000 16,000 175 2,800 9 36,000 18,000 200 3,200 10 40,000 20,000 225 3,600 11 44,000 22,000 250 4,000 12 48,000 24,000 275 4,400 OPTIMAL FORWARD BUY-=MONTH 4! Number of Months  Supply Purchase Avg.  Inventory (1/2  x OQ) Saving in Order  Processing cost from  fewer Orders being  Placed Saving in Purchase  Price
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Increase in Inventory Carrying Cost 67 806.67 873.33 267 733.33 873.33 298.33 600 660 873.33 463.33 1,067 586.67 873.33 495.00 1,667
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Unformatted text preview: 513.33 873.33 393.33 2,400 440 873.33 158.33 3,267 366.67 873.33-210.00 4,267 293.33 873.33-711.67 5,400 220 873.33-1,346.67 6,667 146.67 873.33-2,115.00 8,067 73.33 873.33-3,016.67 9,600 873.33-4,051.67 Cost for Buy-Ahead Period 40% x Avg. Inv. X (No of Months/ 12) Cost for Remaining Months assuming Purchases of $4,400/ Mo) Less Inventory Carrying cost if No Forward Buying takes place Net saving from Forward Buying...
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This note was uploaded on 07/31/2011 for the course NUTRITION 101 taught by Professor Zahora during the Spring '11 term at Gardner-Webb.

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CHAPTER 12 - 513.33 873.33 393.33 2,400 440 873.33 158.33...

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