ABC stores stocks toy race cars. Recently it has been given quantity discount by its suppliers....
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ABC stores stocks toy race cars. Recently it has been given quantity discount by its suppliers. The unit price without discount is $12.00 per unit. If the store orders 800 units or more, it pays $10.00 per unit. The annual demand is 5000 units. The ordering cost per order is $55.00. The holding cost is 20% as a percentage of the unit cost. Calculate a) Economic Order Quantity with and without discount. b) Total Cost for each scenario. c) What order quantity will minimize the total inventory cost? ABC stores stocks toy race cars. Recently it has been given quantity discount by its suppliers. The unit price without discount is $12.00 per unit. If the store orders 800 units or more, it pays $10.00 per unit. The annual demand is 5000 units. The ordering cost per order is $55.00. The holding cost is 20% as a percentage of the unit cost. Calculate a) Economic Order Quantity with and without discount. b) Total Cost for each scenario. c) What order quantity will minimize the total inventory cost?
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