A U.S. jewelry store wishes to buy rare green amethyst gemstones. The supplier of the gemstones has

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A U.S. jewelry store wishes to buy rare green amethyst gemstones. The supplier of the gemstones has announced the quantity discount schedule in the following table. The ordering cost is US$120 per order, and the holding cost is 40% of the unit price per year. The jewelry store is open 300 days a year, and the demand is expected to be 30 gemstones per day. How many of them should the buyer order?

Price per Stone (in U.S. dollars) Quantity Ordered 0 to 499 55.00 52.00 500 to 999 49.00 1, 000 to 1,499 1,500+ 45.00

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Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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