A company that produces aluminum foil, offers the following discount schedule for its sheets as follows: 1
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A company that produces aluminum foil, offers the following discount schedule for its sheets as follows: 1 to 499, $10 each; 500 to 999, $8.5 each; and 1000 or more, $8.0 each. Mini Market X orders aluminum foils from this company. The mini market’s ordering cost is $100. The holding cost is 20 percent of the unit cost and the annual demand is 2000 sheets. Determine the optimal order quantity and the total annual cost.
Related Book For
Operations Management Sustainability And Supply Chain Management
ISBN: 9780135173626
13th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson
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