Question: Happiness Pie industries is evaluating the quantity discount schedule below the annual demand for an item is 9000 units the cost to process an order

Happiness Pie industries is evaluating the quantity discount schedule below the annual demand for an item is 9000 units the cost to process an order is $75 and the annual inventory holding cost is 20% of item cost the prices for the item is a function of order quantity as follows:

1-9: 2.95 per unit

10-999: 2.50 per unit

1000-4999: 2.30 per unit

5000 or more: 1.85 per unit

Determine the feasible order quantity for this item (you do not need to determine the total cost at this time)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!