2 The supply chain of product X has only one manufacturer and one retailer. The average sales at the retail chain is 10,000 a month and production atthe plant keeps pace with this average demand. Each unit of the product costs the manufacturer $3.9 and is sold to the retailer at a wholesale price of$10. Both the manufacturer and the retailer use an annual holding cost of 25%. The order cost for the retailer is $100. The manufacturer incurs thecost of transportation and loading thattotals $1,500 per shipment.Due to a change in the holding cost, the optimal lot size for retailer changes to 3464 units and for the supply chain changes to 11753 units. How muchdoes the inventory cost (annual holding cost +annual order cost) of the retailer change if the retailer orders the lot size that maximizes the supplychain's profit?O $8,456O $5,486O $8,546O None of the options$5,846 The supply chain of product X has only one manufacturer and one retailer. The average sales at the retail chain is 10,000 a month and production atthe plant keeps pace with this average demand. Each unit of the product costs the manufacturer $3.9 and is sold to the retailer at a wholesale price of$10. Both the manufacturer and the retailer use an annual holding cost of 25%. The order cost for the retailer is $100. The manufacturer incurs thecost of transportation and loading thattotals $1,500 per shipment.If the retailer orders 10,000 units each time instead of ordering the optimal lot size, its inventory cost will increase by $5954. What is the minimumdiscount per unit that the manufacturer should offer to encourage the retailer to order in a lot size of 10000 units?None of the options$0.50 per unitO $0.60 per unit$0.65 per unit$0.55 per unit

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e plant keeps pace with this average demand. Each unit of the product costs the manufacturer $3.9 and is sold to the retailer at a wholesale pri 10. Both the manufacturer and the retailer use an annual holding cost of 25%. The order cost for the retailer is $100. The manufacturer incurs th ost of transportation and loading thattotals $1,500 per shipment. ue to a change in the holding cost, the optimal lot size for retailer changes to 3464 units and for the supply chain changes to 11753 units. How n pes the inventory cost (annual holding cost +annual order cost) of the retailer change if the retailer orders the lot size that maximizes the supply hain's profit? O $8,456 O $5,486 O $8,546 O None of the options

e plant keeps pace with this average demand. Each unit of the product costs the manufacturer $3.9 and is sold to the retailer at a wholesale pri 10. Both the manufacturer and the retailer use an annual holding cost of 25%. The order cost for the retailer is $100. The manufacturer incurs th ost of transportation and loading thattotals $1,500 per shipment. ue to a change in the holding cost, the optimal lot size for retailer changes to 3464 units and for the supply chain changes to 11753 units. How n pes the inventory cost (annual holding cost +annual order cost) of the retailer change if the retailer orders the lot size that maximizes the supply hain's profit? O $8,456 O $5,486 O $8,546 O None of the options

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

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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