Question: A Dept Store buys a product from its vendor. The following information is available, assume no safety stock. no quantity discount range discount range! range

A Dept Store buys a product from its vendor. The

A Dept Store buys a product from its vendor. The following information is available, assume no safety stock. no quantity discount range discount range! range 2 range 3 annual demand, units/yr (D) 5.000 5,000 5,000 5,000 order cost or setup cost, per order (0) $49 $49 $49 S49 inventory carrying costs (annual) %/unit 0.20 0.20 0.20 0.20 quantity discount range 700 1,000 2,000 2.500 unit cost, per unit (C) $5.00 $4.80 $4.75 $4.50 safety stock, units (SS) 0 0 0 0 EOQ under discount range 2 is not 718 total orders a year under discount range 3 are not 6 maximum inventory under discount range 3 is not 2,000 | average inventory under discount range 3 is more than 1,250 | annual inventory carrying costs under discount range 2 are not $1,125 | annual order costs under discount range I are $98 | annual purchase costs under discount range 2 are 23,750 the lowest annual total costs are less than $24,823 A Dept Store buys a product from its vendor. The following information is available, assume no safety stock. no quantity discount range discount range! range 2 range 3 annual demand, units/yr (D) 5.000 5,000 5,000 5,000 order cost or setup cost, per order (0) $49 $49 $49 S49 inventory carrying costs (annual) %/unit 0.20 0.20 0.20 0.20 quantity discount range 700 1,000 2,000 2.500 unit cost, per unit (C) $5.00 $4.80 $4.75 $4.50 safety stock, units (SS) 0 0 0 0 EOQ under discount range 2 is not 718 total orders a year under discount range 3 are not 6 maximum inventory under discount range 3 is not 2,000 | average inventory under discount range 3 is more than 1,250 | annual inventory carrying costs under discount range 2 are not $1,125 | annual order costs under discount range I are $98 | annual purchase costs under discount range 2 are 23,750 the lowest annual total costs are less than $24,823

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