5. A moving company uses 18,000 cardboard cartons per year. The product carrying cost rate is...
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5. A moving company uses 18,000 cardboard cartons per year. The product carrying cost rate is 7%, and ordering costs are 52 AED per order. The carton supplier offers the following price schedule (20 points): # Cartons Ordered Price 1,000 to 1,999 2,000 to 4,999 5,000 to 9,999 per Carton (AED) 4.6 4.4 4.2 4.0 10,000 or more Please be sure to show all of your work. You can do the analysis on Excel if you want, and then upload a copy of the spreadsheet along with your essays. a. What is the optimal order quantity for this moving company? (15 points) b. How many orders will this moving company be placing per year? (5 points) 5. A moving company uses 18,000 cardboard cartons per year. The product carrying cost rate is 7%, and ordering costs are 52 AED per order. The carton supplier offers the following price schedule (20 points): # Cartons Ordered Price 1,000 to 1,999 2,000 to 4,999 5,000 to 9,999 per Carton (AED) 4.6 4.4 4.2 4.0 10,000 or more Please be sure to show all of your work. You can do the analysis on Excel if you want, and then upload a copy of the spreadsheet along with your essays. a. What is the optimal order quantity for this moving company? (15 points) b. How many orders will this moving company be placing per year? (5 points)
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