Jill’s Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered whenever the remaining quantity drops to the reorder level. Widgets are ordered from a supplier who stops by every five weeks. Data for both products are as follows TEGDIW 15,000 ITEM Annual demand Holding cost (% of item cost) Setup or order cost Lead time Safety stock Item cost WID 5,000 15 % 20 % $ 160.00 $ 15.00 8 week
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