Question: Option Plan Quantity Price A 1 - 2,699 $6.00 B 2,700 - 4,799 $5.75 C 4,800+ $5.10 A large big-box retailer expects to sell 10,000
Option Plan Quantity Price A 1 - 2,699 $6.00 B 2,700 - 4,799 $5.75 C 4,800+ $5.10
A large big-box retailer expects to sell 10,000 units this year. This retailer estimates that it incurs an internal administrative cost of $155 each time it places an order with the manufacturer. Holding cost for the retailer is $40per case per year. (There are 48 units or water bottles per case.) Based on this information, and not taking into account any quantity discount offers, what is the calculated EOQ (in units)? (Display your answer to the nearest whole number.)
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