Question: 7 . A manager receives a forecast for next year. Demand is projected to be 6 0 0 units for the first half of the
A manager receives a forecast for next year. Demand is projected to be units for the first half
of the year and units for the second half. The monthly holding cost is $ per unit, and it costs an estimated $ to process an order. b why is it important to be able to assume that demand will be level during each sixmonth period. c If the vendor is willing to be offer a discount of $ per order for ordering in multiplies of units, would you advise the manager to take advantage of the offer in either period?
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