8. Steamy Speedboats has an annual demand for 1,500 speedboats. Its supplier offers quantity discounts to promote
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Question:
8. Steamy Speedboats has an annual demand for 1,500 speedboats. Its supplier offers quantity discounts to promote larger order quantities. The cost to place an order is $300, and the holding rate is 32% of the purchase cost. The purchase cost for each speedboat is based on the price schedule given below. Compute the following: a. optimal order quantity b. annual purchase cost c. annual holding cost d. annual order cost e. total annual inventory cost | |||||
Order Quantity | Price per Unit | ||||
1-50 | 18000 | ||||
51-100 | 18000 | ||||
101-150 | 17400 | ||||
151 and above | 16800 |
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