Question: A mail - order house uses 1 8 , 0 0 0 boxes a year. Carrying costs are 4 0 % of price per box
A mailorder house uses boxes a year. Carrying costs are of price per box a year, and ordering costs are $ The mailorder house operates days a year. The following price schedule applies.
Number of Boxes
Price per Box $
to
to
$
to
$
or more
$
Determine:
a The optimal order quantity.
b The number of orders per year.
c The length of an order cycle.
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