Publix sells whole grain pasta for which the annual demand, Ask an Expert

Management Studies

Publix sells whole grain pasta for which the annual demand is 5,000 boxes. At the moment, it is paying $6.40 for each box; carrying cost is 25% of the unit cost; ordering costs are $25. A new supplier has offered to sell the same item for $6.00 if Publix buys at least 3,000 boxes per order. Should Publix stick with the old supplier, or take advantage of the new quantity discount?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92558517

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