IM.83 A distribution center for a sporting goods retailer places orders with manufacturers for a variety...
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IM.83 A distribution center for a sporting goods retailer places orders with manufacturers for a variety of items. Among these is a popular standard skateboard, targeted to first-time skate boarders. The regular price is $50, however, the manufacturer of this skateboard offers quantity discounts per the following discount schedule: Option Plan A Quantity 1 - 799 Discount 0% B C 800 - 1,999 2,000+ 1.0% 2.00% The retailer pays $90 each time it places an order with the manufacturer. Holding costs are negligible (none) but they do earn 12% annual interest on all cash balances (meaning there will be an financial opportunity cost when they put cash into inventory). Annual demand is expected to be 28,750 units. Based on this information, sort each option plan from left to right by dragging the MOST preferred option plan to the left, and the LEAST preferred option plan to the right: Option Plan A Option Plan C Option Plan B For the MOST preferred option in the previous question, what will be the adjusted order quantity? (Display your answer to the nearest whole number.) Number What will be the annual holding cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number What will be the total annual inventory cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number IM.83 A distribution center for a sporting goods retailer places orders with manufacturers for a variety of items. Among these is a popular standard skateboard, targeted to first-time skate boarders. The regular price is $50, however, the manufacturer of this skateboard offers quantity discounts per the following discount schedule: Option Plan A Quantity 1 - 799 Discount 0% B C 800 - 1,999 2,000+ 1.0% 2.00% The retailer pays $90 each time it places an order with the manufacturer. Holding costs are negligible (none) but they do earn 12% annual interest on all cash balances (meaning there will be an financial opportunity cost when they put cash into inventory). Annual demand is expected to be 28,750 units. Based on this information, sort each option plan from left to right by dragging the MOST preferred option plan to the left, and the LEAST preferred option plan to the right: Option Plan A Option Plan C Option Plan B For the MOST preferred option in the previous question, what will be the adjusted order quantity? (Display your answer to the nearest whole number.) Number What will be the annual holding cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number What will be the total annual inventory cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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