Upon hearing that Ross White (see Problems 6-25 and 6-26) is considering produ

Upon hearing that Ross White (see Problems 6-25 and 6-26) is considering producing the brackets in house the vendor has notified Ross that the purchase
price would drop from $15 per bracket to $14.50 per bracket if Ross will purchase the brackets in lots of 1000. Lead times however would increase to 3
days for this larger quantity.

(a) What is the total annual inventory cost plus purchase cost if Ross buys the brackets in lots of 1000 at $14.50 each?
(b) If Ross does buy in lots of 1000 brackets what is the new ROP? (c) Given the options of purchasing the brackets at $15 each producing them in-house
at $14.80 and taking advantage of the discount what is your recommendation to Ross White?