A supplier's price schedule is: Order Quantity EOQ 45.00 EOQ If ordering cost is $16 per...
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A supplier's price schedule is: Order Quantity EOQ 45.00 EOQ If ordering cost is $16 per order, annual holding cost is 20 percent of the purchase price, and annual demand is 1,800 items, what is the best order quantity? Step 1: C 16 = 50.00 Step 2: 76 2 = 0-99 = 100 or more 2 DS H (infeasible) 2 DS H = 2 (1,860)(16 (45 -(50×0.2)+ 1,800 76 Price per Unit $50 45 (feasible) 2(1,80016) (50 (16)+ 50 (1,800) = $90,759 The best order quantity is units. A supplier's price schedule is: Order Quantity EOQ 45.00 EOQ If ordering cost is $16 per order, annual holding cost is 20 percent of the purchase price, and annual demand is 1,800 items, what is the best order quantity? Step 1: C 16 = 50.00 Step 2: 76 2 = 0-99 = 100 or more 2 DS H (infeasible) 2 DS H = 2 (1,860)(16 (45 -(50×0.2)+ 1,800 76 Price per Unit $50 45 (feasible) 2(1,80016) (50 (16)+ 50 (1,800) = $90,759 The best order quantity is units.
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Answer rating: 100% (QA)
To determine the best order quantity we can use the Economic Order Quantity EOQ formula Lets go through the steps 1 EOQ formula EOQ sqrt2 D S H Given ... View the full answer
Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
Posted Date:
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