UC parking services is looking at price discounts for plastic tag holders parking vouchers for guests....

 

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UC parking services is looking at price discounts for plastic tag holders parking vouchers for guests. If they know that the annual demand is 36,000 and that the order costs for this with the UC logo on is $25 and there's a 20% holding costs to keep track of these in inventory annually. The regular purchase price is $0.85 and the discounted price of $0.82 for orders above 6,000. Should UC take the discount and order above 6,000 at a time? yes - take the discount, because the total cost is cheaper no - don't take the discount, because the EOQ quantity isn't feasible UC parking services is looking at price discounts for plastic tag holders parking vouchers for guests. If they know that the annual demand is 36,000 and that the order costs for this with the UC logo on is $25 and there's a 20% holding costs to keep track of these in inventory annually. The regular purchase price is $0.85 and the discounted price of $0.82 for orders above 6,000. Should UC take the discount and order above 6,000 at a time? yes - take the discount, because the total cost is cheaper no - don't take the discount, because the EOQ quantity isn't feasible

Answer rating: 100% (QA)

Yestake the discount because the total cost is cheaper Explanation Carrying Cost C0... View the full answer