A store estimates their holding costs at 31% and incurs a fixed cost of $65.00 for each
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Question:
A store estimates their holding costs at 31% and incurs a fixed cost of $65.00 for each order. Demand for an item is 2,050 units per year. A supplier offers a price of $13.00 each for quantities of 450 or fewer and a price of $12.22 for quantities over 450 units.
How many units should the retailer order at one time?
What is the total annual cost at this order point?
Note: Round your answer to the nearest integer value.
Related Book For
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman
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