Question

A supplier has come to you and offered the following deal. If you buy 29 or fewer cases of cleaning solution, the cost will be $25 for each case. If you buy 30 or more cases, the cost will be $20 per case. Assume your cost of carrying inventory is 15 per cent a year, it costs $20 for you to order the material, and you use 50 cases per year.
a. How many cases should you order?
b. Would you negotiate with this supplier for a further discount? Explain the quantities and prices that you would negotiate for and why those quantities and prices are selected.


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  • CreatedSeptember 20, 2015
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