Annual demand for a special soldering material is 3000 lbs. The holding cost is 24% per year,
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Question:
Annual demand for a special soldering material is 3000 lbs. The holding cost is 24% per year, based on the purchase price. Order cost is $42 per order. The price schedule is as follows:
| < 100 lbs. | $22 per pound |
| 100 lbs. to 1000 lbs. | $21 per pound |
| More than 1000 lbs. | $20 per pound |
Determine how much should be bought at a time.
Expert Answer:
First we determine EOQ based on the highest price ie 22 EOQ 2CoDCh 2423000528 ... View the full answer
Related Book For 
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
Posted Date:
