A gardener buys plant nutrients from Miracle-Gro. Miracle-Gro's price schedule is $5.9 per bottle on orders...

 

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A gardener buys plant nutrients from Miracle-Gro. Miracle-Gro's price schedule is $5.9 per bottle on orders of 1 to 27 bottles, $5.6 per bottle on orders of 28 to 39 bottles, and $5.4 per bottle on orders of 40 or more bottles. Ordering cost is $5.9 per order, and annual holding cost is 15 percent of the per- unit purchase price. Annual demand is 50 bottles. What is the minimum inventory cost the gardener can achieve? A gardener buys plant nutrients from Miracle-Gro. Miracle-Gro's price schedule is $5.9 per bottle on orders of 1 to 27 bottles, $5.6 per bottle on orders of 28 to 39 bottles, and $5.4 per bottle on orders of 40 or more bottles. Ordering cost is $5.9 per order, and annual holding cost is 15 percent of the per- unit purchase price. Annual demand is 50 bottles. What is the minimum inventory cost the gardener can achieve?

Answer rating: 100% (QA)

To determine the minimum inventory cost we need to consider the optimal order quantity that minimize... View the full answer