Course Solutions Uncategorized (Answered) : Jill’s Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are

(Answered) : Jill’s Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are

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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