Question: A retail store in St . John's NL , which sells ( among other things ) one kind of USB sticks, knows that the annual
A retail store in St John's NL which sells among other things one kind of USB sticks, knows that the annual demand for these USB sticks is constant at unitsyear at the selling price to end customers of $unit These USB sticks are obtained only from one supplier, who charges a delivery fee of $ for each order, regardless of the number of units delivered. The inventory holding cost rate is calculated based on percent annual interest rate.
The supplier charges $unit for units ordered, but is willing to give a discount of per unit for orders between units and a discount of per unit for orders of units and above.
In order to get the discount of per unit for orders of units and above, what is the optimal order quantity?
Question options:
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
