A mail-order house uses 17,750 boxes a year. Carrying costs are 60 cents per box a year,

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A mail-order house uses 17,750 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.

Number of BoxesPrice per Box1,000 to 1,999$1.252,000 to 4,9991.205,000 to 9,9991.1510,000 or more1.10

a.Determine the optimal order quantity.(Round your answer to the nearest whole number.)

Optimal order quantityboxes

b.Determine the number of orders per year.(Round your answer to 2 decimal places.)

Number of orderper year

Related Book For answer-question

Operations Management

ISBN: 978-0078024108

12th edition

Authors: William J Stevenson

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Posted Date: May 10, 2024 05:54 AM

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A mail-order house uses 17,750 boxes a year. Carrying costs are 60 cents per box a year,

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To determine the optimal order quantity we can use the economic order qu... View the full answer

Operations Management

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