第十章采购与供应决策课件.pptVIP

Timing of Purchases (Cont’d) Strategy Try purchasing every four months while prices are rising and hand-to-mouth purchasing when they are falling. Price upswing purchase cost No of Cost Total Date units per unit cost Jan 80,000 $2.00 $160,000 May 80,000 2.35 188,000 Sep 80,000 2.75 220,000 _______ ________ 240,000 $568,000 Average cost per unit = 568,000/240,000 = $2.37 per unit CR (2004) Prentice Hall, Inc. 10-53 20,000 240,000 $593,800 Timing of Purchases (Cont’d) Price downswing purchase cost Average cost per unit = 593,000/240,000 = $2.47 per unit No of Cost Total Date units per unit cost Jan 20,000 $2.86 $ 57,200 Feb 20,000 2.83 56,600 Mar 20,000 2.80 56,000 Apr 20,000 2.75 55,000 May 20,000 2.65 53,000 Jun 20,000 2.55 51,000 Jul 20,000 2.45 49,000 Aug 20,000 2.35 47,000 Sep 20,000 2.25 45,000 Oct 20,000 2.15 43,000 Nov 20,000 2.05 41,000 2.00 40,000 Dec Note: This is the same average price as hand-to-mouth buying on price upswing. CR (2004) Prentice Hall, Inc. 10-54 CR (2004) Prentice Hall, Inc. Timing of Purchases (Cont’d) Savings Savings for one year out of two are: or $593,800 – 568,000 = $25,000 But trades with increased inventory Buying in 80,000 lot quantities instead of 20,000 will add to inventory. This is the incremental inventory needed for forward buying compared with H-to-M 10-55 10-* CR (2004) Prentice Hall, Inc. Timing of Purchases (Cont’d) Suppose inventory carrying costs are 25% per year on an approximate value of $2.37 per unit. Incremental inventory costs would be: CC = 0.25(2.37)(30,000) = $17,775 Net savings = 25,000 – 17,775 = $7,225 in favor of forward buying. Now, try other lengths of forward buying, such as