Business, 12.04.2021 22:00 solphiafischer

Distributor XYZ purchases chemicals that show definite price seasonality throughout the year. Demand for the chemical is constant throughout the year at 2,000 tanks per month and you can only place order at odd months (Jan, Mar, May, July, Sep and Nov). Inventory holding charge at XYZ is estimated at $200/tank/year. Order setup cost is $50/order. Prices charged by the supplier throughout the year are projected as follows: Month Price ($/tank) Jan - Feb 50 Mar - Apr 48 47 46 May - June July - Aug Sep - Oct Nov - Dec 60 64 Consider a mixed buying strategy: using the hand-to-mouth strategy from Jan - June and forward buying from Jul - Dec. Specify the following costs: Item Cost: $ Order Setup Cost: $ Average Annual Holding Cost: $

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Distributor XYZ purchases chemicals that show definite price seasonality throughout the year. Demand...

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