A supply chain has two members, one buyer and other is seller. The buyer needs 10000 units of an item per year. The;buyer?s ordering cost is Rs.450 per order. The buyer?s holding cost is Rs.100 per unit per year. The seller sets up a;production run and produces the buyer?s EOQ and dispatches it. His setup cost is Rs.2750. The seller does not hold;any inventory. Calculate;(i) If the two operate independently, what are the buyer?s inventory costs, and;(ii) If they join together and operate as one unit, what will be the total system cost?
Paper#19402 | Written in 18-Jul-2015Price : $17