A grocery store has a monthly demand of 750 chocolate bars. It buys the bars from the
distributor at price of $60 per bar. It calculated that keeping a bar in stock, costs around 67
cents per month. Each time it places an order to the distributor, there is a processing fee of
$160. The distributor offered the store a discounted price of $56 per chocolate bar if it orders
300 bars each time. Solve to determine whether the store should take the offer.
In your answer, compare the two scenarios in tabular form and include the following:
(i) Lot size
(ii) Average inventory
(iii) Number of orders per year
(iv) Purchase cost
(v) Carrying cost
(vi) Ordering cost
(vii) Total Cost
(viii) Savings
(20 marks)
Looking for solution of this Assignment?
WHY CHOOSE US?
We deliver quality original papers |
Our experts write quality original papers using academic databases.We dont use AI in our work. We refund your money if AI is detected |
Free revisions |
We offer our clients multiple free revisions just to ensure you get what you want. |
Discounted prices |
All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount |
100% originality |
We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity.We have ZERO TOLERANCE TO USE OF AI |
On-time delivery |
We will deliver your paper on time even on short notice or short deadline, overnight essay or even an urgent essay |