Find the optimal order quantity for an annual demand of 10,000 units, a cost per unit of

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Find the optimal order quantity for an annual demand of 10,000 units, a cost per unit of $3, an inventory-carrying charge rate of 20 percent, and an order cost of $32. For orders between 100 and 1999 units, the supplier gives a two percent discount, and for orders of 2000 units or more, the supplier gives a three percent discount. Use the Quantity Discount Excel template in MindTap to find the optimal order size and explain how the adjusted order sizes for the discount categories were determined.

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Operations And Supply Chain Management

ISBN: 9780357131695

2nd Edition

Authors: David A. Collier, James R. Evans

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