County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year.
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Question:
County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule.
QUANTITY | PRICE |
0–9,999 | $3.40 |
10,000–19,999 | 3.20 |
20,000–29,999 | 3.00 |
30,000–39,999 | 2.80 |
40,000–49,999 | 2.60 |
50,000+ | 2.40 |
Determine the order size for the hospital.
Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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