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NAME: PLEDGE: Interest Monthly Demand Annual Demand 25% 300 (units) 3,600 #1 #2 #3 Supplier -- All Unit Quantity Discount Order Size Threshold Q 2500 2500 Unit Cost $9.50 $7.50 $6.50 Shippping Cost per order $600 Supplier -- All Unit Quantity Discount Annual Annual Holding cost Annual Ordering cost Purchasing cost Order Quantity Cost per Unit Annual Total Cost 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 Use appropriate order quantity with formulas from class Optimal Quantity as calculated above Q*1 = TC1 = 0*2 = TC2 = = Q*3 = TC3 = Hint: Ensure TC references a valid Q* for the order sizes indicated 1. What circumstances might cause you to choose a different supplier than the one indicated on the first tab, and why? 2. Consider a grocery store deciding on the size of its replenishment order from Proctor & Gamble. What costs should it take into account when making this decision? 3. Why do you think you were asked to calculate answers two different ways? What have you learned from this exercise? NAME: PLEDGE: Interest Monthly Demand Annual Demand 25% 300 (units) 3,600 #1 #2 #3 Supplier -- All Unit Quantity Discount Order Size Threshold Q 2500 2500 Unit Cost $9.50 $7.50 $6.50 Shippping Cost per order $600 Supplier -- All Unit Quantity Discount Annual Annual Holding cost Annual Ordering cost Purchasing cost Order Quantity Cost per Unit Annual Total Cost 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 Use appropriate order quantity with formulas from class Optimal Quantity as calculated above Q*1 = TC1 = 0*2 = TC2 = = Q*3 = TC3 = Hint: Ensure TC references a valid Q* for the order sizes indicated 1. What circumstances might cause you to choose a different supplier than the one indicated on the first tab, and why? 2. Consider a grocery store deciding on the size of its replenishment order from Proctor & Gamble. What costs should it take into account when making this decision? 3. Why do you think you were asked to calculate answers two different ways? What have you learned from this exercise

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