A commercial laundromat products manufacturer wants to consolidate the purchase of all the cardboard boxes it needs

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A commercial laundromat products manufacturer wants to consolidate the purchase of all the cardboard boxes it needs for the detergents, bleaches, and fabric softeners it sells to laundromats. The total demand for all these boxes is 10,000 units per year (a unit = 1,000 packages). Assume that ordering cost is $50 per order and holding cost rate is 20 percent per year. The following unit prices and the associated order quantity ranges are proposed by the most competitive bidder. If this bidder is chosen, what should the order quantity for the boxes be?
A commercial laundromat products manufacturer wants to consolidate the purchase
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Operations Management

ISBN: 978-0071091428

4th Canadian edition

Authors: William J Stevenson, Mehran Hojati

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