Adap-Table has an annual demand of 5,600 adjustable height desks. Each desk costs $395. The holding...

 

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Adap-Table has an annual demand of 5,600 adjustable height desks. Each desk costs $395. The holding cost is approximately 18% of the unit's cost, and the ordering cost is $57 per order. 1. Determine the optimal order quantity that will minimize total cost. 2. What will the total annual costs of the adjustable height tables (include order (set-up) cost, holding cost, and purchase cost)? 3. In the course of a year, approximately how many orders are placed? EXTRA CREDIT (Up to +5 points): The manufacturer of the desk offered Adap-Table a 2% discount if they agree to order in lots of 200. 4. Should Adap-Table take the quantity discount? If so, how much money would he be saving per year? If not, why not? (Show calculations to justify answer) For this problem, you can complete all of your work here. Remember to show your work (eg. label your variables and show your formulas used) to receive credit. Adap-Table has an annual demand of 5,600 adjustable height desks. Each desk costs $395. The holding cost is approximately 18% of the unit's cost, and the ordering cost is $57 per order. 1. Determine the optimal order quantity that will minimize total cost. 2. What will the total annual costs of the adjustable height tables (include order (set-up) cost, holding cost, and purchase cost)? 3. In the course of a year, approximately how many orders are placed? EXTRA CREDIT (Up to +5 points): The manufacturer of the desk offered Adap-Table a 2% discount if they agree to order in lots of 200. 4. Should Adap-Table take the quantity discount? If so, how much money would he be saving per year? If not, why not? (Show calculations to justify answer) For this problem, you can complete all of your work here. Remember to show your work (eg. label your variables and show your formulas used) to receive credit.