Oleg Blokhin Sportwear uses, for the goalkeeper gloves, a time sensitive and unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. He uses 250 pounds per month of the chemica

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can someone help me with this question?

Oleg Blokhin Sportwear uses, for the goalkeeper gloves, a time sensitive and unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. He uses 250 pounds per month of the chemical, estimates the holding cost to be £4.25 (because of spoilage), and estimates order costs to be £20 per order. The cost schedules of four suppliers are as follows: (the image)

for the first part: Identify and discuss what quantity should be ordered, and which supplier should be used?

  • quantitative answer.
  • please show step by step calculation so i know what you did to get answer.
  • you can type it - no need for writing it.

 

now for anther question: Discuss factor(s) that should be considered besides total.

thank you very much:)

 

 

Vendor 1
Quantity
1-49
50-99
100-149
150-249
250-349
350-499
500+
Price/LB (£)
36.00
34.75
33.55
32.35
31.25
30.50
30.00
Vendor 3
Quantity
1-99
100-199
200-399
400-499
500+
Price/LB (£)
34.50
33.75
32.00
31.25
30.50
Vendor 2
Quantity
1-74
75-149
150-224
225-299
300-374
375-449
450+
Price/LB (£)
35.00
34.00
32.80
31.90
31.40
30.90
30.50
Vendor 4
Quantity
1-199
200-399
400-599+
600+
Price/LB (£)
36.00
34.00
32.00
30.00
Transcribed Image Text:Vendor 1 Quantity 1-49 50-99 100-149 150-249 250-349 350-499 500+ Price/LB (£) 36.00 34.75 33.55 32.35 31.25 30.50 30.00 Vendor 3 Quantity 1-99 100-199 200-399 400-499 500+ Price/LB (£) 34.50 33.75 32.00 31.25 30.50 Vendor 2 Quantity 1-74 75-149 150-224 225-299 300-374 375-449 450+ Price/LB (£) 35.00 34.00 32.80 31.90 31.40 30.90 30.50 Vendor 4 Quantity 1-199 200-399 400-599+ 600+ Price/LB (£) 36.00 34.00 32.00 30.00
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Follow-up Question

i have found anther answer for this question on bartleby and it has a lot less working out and he didnt give answer to second question but the answer he gave for the first one is very different i am not sure which one to use below is his answer:

Step 1: Basic Information

The question is related to Economic order quantiy Economic Order Quantity is that level of inventory at which ordering cost and handling cost are minimum. It is calculated with the help of following formula 

Economic Order Quantity = √2RO ÷ C

R = Annual Requirment 

C = Carrying or Holding cost 

O = Ordering Cost 

 

Step 2: Solution

Economic Order Quantity = √2RO ÷ C

Economic Order Quantity = √2 × 3000 × 20 ÷ 4.25

Economic Order Quantity = √28,235.294117647

Economic Order Quantity = 168.0336100834 pounds 

R = Annual Requirment i.e.250 × 12 = 3000 pounds per annum.

C = Carrying or Holding cost i.e. £4.25 

O = Ordering Cost i.e. £20

Quantity to be ordered = 168.03 pounds. 

Supplier = Vendor 1 should be used as the cost per pound  for 168 pounds is £32.25 (as per table given)  being lower than all other vendors. 

 

Quantity to be ordered = 168.03 pounds.

Supplier = Vendor 1 should be used as the cost per pound for 168 pounds is £32.25 (as per table given) being lower than all other vendors.

Solution
Bartleby Expert
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Follow-up Question

i was reading this answer and the way its calculated is a longer process then what someone else wrote can you check if ishould use this one that bartleby has given me or the other one:

 

 

Step 1: Basic Information

The question is related to Economic order quantiy Economic Order Quantity is that level of inventory at which ordering cost and handling cost are minimum. It is calculated with the help of following formula 

Economic Order Quantity = √2RO ÷ C

R = Annual Requirment 

C = Carrying or Holding cost 

O = Ordering Cost 


Step 2: Solution

Economic Order Quantity = √2RO ÷ C

Economic Order Quantity = √2 × 3000 × 20 ÷ 4.25

Economic Order Quantity = √28,235.294117647

Economic Order Quantity = 168.0336100834 pounds 

R = Annual Requirment i.e.250 × 12 = 3000 pounds per annum.

C = Carrying or Holding cost i.e. £4.25 

O = Ordering Cost i.e. £20

Quantity to be ordered = 168.03 pounds. 

Supplier = Vendor 1 should be used as the cost per pound  for 168 pounds is £32.25 (as per table given)  being lower than all other vendors. 


Solution

Quantity to be ordered = 168.03 pounds.

Supplier = Vendor 1 should be used as the cost per pound for 168 pounds is £32.25 (as per table given) being lower than all other vendors.

Solution
Bartleby Expert
SEE SOLUTION
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