Question: A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The price schedule is Quantity purchased fewer than

A supplier for an electronics store has
A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The price schedule is Quantity purchased fewer than 525 at least 525 Price per unit $80 $75 Suppose the monthly demand at a retail store that buys from this retailer and resells is 175 units. The supplier charges a fixed cost of $180 per shipment. The cameras are expected to sell well for multiple seasons, so multiple replenishment opportunities are possible, If the retailer estimates its annual holding costs to be 2.0%, what is the optimum order quantity of a continuous review policy? (Note: Choose the closest answer)

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