Question: Demand for the PCPro computer at B-Buy is 1000 units per month. B-Buy incurs a fixed order placement, transportation, and receiving cost of $4000 each

Demand for the PCPro computer at B-Buy is 1000 units per month. B-Buy incurs a fixed order placement, transportation, and receiving cost of $4000 each time an order is placed. Each computer costs B-buy $600 and the retailer has a holding cost of 10%. The delivery lead-time is 6 days.(Assume 30 days in a month). The store manager at B-Buy would like to have the optimal lot size to be 300. For this happen, calculate how much the order cost per lot should be reduced.?

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SOLUTION To calculate how much the order cost per lot should be reduced in order to achieve an optimal lot size of 300 we need to compare the current ... View full answer

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