Question: A manager has just received a revised price schedule from a supplier as shown below. What order quantity should the manager use in order to

A manager has just received a revised price schedule from a supplier as shown below. What order quantity should the manager use in order to minimize total inventory costs? Annual demand is 1,200 units; ordering cost is $8; and holding cost is 20%.

Quantity Unit Price 1 39 $14

40 59 $13

60 89 $12

90 + $ 11

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

A manager has just received a revised price schedule from a vendor. What order quantity should the manager use in order to minimize total costs? Annual demand is 120 units, ordering cost is $10 per...

Pls post step by step Part B) Open End Problems com swer in the space prowided or on a separate sheet of paper . 3 of 4 ist demand for product ZXT is given in the following table. Month Actual Demand...

26 QUESTION 25 A manager has just received a revised price schedule of an item from a supplier as shown in the table below. In annual demand of the item is 1 200 units, ordering cost is $8 and...

A manager has just received a revised price schedule from a vendor. What ordeiquantity should the manager use in order to minimize total costs? Annual demand is 1 5 0 units, ordering cost is $l 2 ,...

[ 1 2 Pts ] A manager has just received a revised price schedule from a vendor. What order quantity should the manager use in order to minimize total costs? Annual demand is 1 5 0 units, ordering...

15) The daily demand for a product is normally distributed with a mean of 80 and a standard deviation of 8. Constant lead time is 4 days. The cost of placing an order is $20. The item costs $8 and...

please explain without excel 15) The daily demand for a product is normally distributed with a mean of 80 and a standard deviation of 8. Constant lead time is 4 days. The cost of placing an order is...

24) A manager has just received a revised price schedule from a vendor. What order quantity should the manager use in order to minimize total costs? Annual demand is 120 units, ordering cost is $10,...

A manager has just received a revised price schedule from a vendor shown in table below: Quantity Unit Price 1 to 49 units $14 50 to 99 units $13 100 to 149 units $12 150 to 199 units $11 200 to 249...

On December 31, it was estimated that goodwill of $375,000 was impaired. In addition, a patent with an estimated useful economic life of 10 years was acquired for $600,000 on October 1. a. Journalize...

The following information was taken from the financial statements of Tolbert Inc. for December 31 of the current fiscal year: Common stock, $50 par value (no change during the year) $7,500,000...

To address the ethical issues in global financial markets, regulatory bodies, industry stakeholders, and the FinTech industry can collaborate through a structured approach. This process involves...

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...