The maintenance department of a large hospital uses about 50000 cases of liquid cleanser annually. Ordering...

  

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The maintenance department of a large hospital uses about 50000 cases of liquid cleanser annually. Ordering cost is $250, carrying cost per unit is 2 percent of the prices of a case, and the new price schedule indicates that orders of less than 100 cases will cost $150 per case, 100 to 199 cases will cost $145 per case, 200 to 399 cases will cost $140 per case, and orders larger than 399 will cost $135 per case. Determine the economic order quantity for each of the ranges Determine the minimum total cost of ordering and inventory holding per year for each of the ranges. Determine the range which leads to the optimal annual total cost solution to the problem of buying liquid cleansers. ii. The maintenance department of a large hospital uses about 50000 cases of liquid cleanser annually. Ordering cost is $250, carrying cost per unit is 2 percent of the prices of a case, and the new price schedule indicates that orders of less than 100 cases will cost $150 per case, 100 to 199 cases will cost $145 per case, 200 to 399 cases will cost $140 per case, and orders larger than 399 will cost $135 per case. Determine the economic order quantity for each of the ranges Determine the minimum total cost of ordering and inventory holding per year for each of the ranges. Determine the range which leads to the optimal annual total cost solution to the problem of buying liquid cleansers. ii.

Answer rating: 100% (QA)

Step 12 EOQ or Economic Order Quantity is the process of determining the quantity of an upcoming ord... View the full answer