Q. Motor Corporation purchases components from 3 suppliers: Components from supplier Alpha cost $6 also is used at the rate 7,000 units/month; components from supplier Beta cost $4 also are used at the rate 5,000 units/month; components from supplier Gamma cost $5 also are used at the rate 3,000 units/month. The trucking Corporation is charging a fixed cost of $550/truck (for the purpose of this exercise, suppose which you do not need to worry about the truck capacity). Presently, they purchase separate truckloads from every supplier.

Elucidate what is the corresponding minimal annual cost?

Elucidate what is the cycle inventory of every component?

Suppose which the annual holding cost is 15% of product cost, h=0.15.