Case Questions: Manwell Toy Importers What are the cost elements included in the costs of having the toys leave the leave manufacturer and reach a consolidator in either Hong Kong or Singapore? At present the consolidator loads toys as received, and every time a container is full he sends it to Manwell in Canada. What if the consolidator, in either Hong Kong or Singapore, had a container destined for each major Manwell outlet and filled each container with toys for that outlet only? What would the costs be of that system?

Emery pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. emery uses 825 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $48 per order. the cost schedules of two suppliers are as follows: vendor 1 vendor 2 quantity price/lb quantity price/lb 1-499 $17 1-399 $17.10 500-999 $16.75 400-799 $16.85 1000+ $16.50 800-1199 $16.60 1200+ $16.25 (a) what is the economic order quantity for each supplier? (b) what quantity should be ordered and which supplier should be used? (c) the total cost for the most economic order sire is $