Question: Order Quantity Discount (Inventory.) (3 Points) Note: Any wrong answer will deduct one point of your grade) You have an electronics store, and you are

Order Quantity Discount (Inventory.) (3 Points)

Order Quantity Discount (Inventory.) (3 Points) Note: Any wrong answer will deduct one point of your grade) You have an electronics store, and you are planning to buy headphones from china. The supplier in china offers you three different prices for the same headphone. The discount you will get is based on the quantity you order. Below is a quotation from the supplier. Please find the economic order quantity (must be feasible), annual ordering cost, annual holding cost, total product cost, and the total cost PRICE RANGE QUANTITY ORDERED Headphone Price Initial price O to 999 $ 200 Discount price 1 999 to 1999 Discount price 2 2000 and above $ 100 $ 150 Annual Headphone Demand (Units) Ordering or Setup Cost per Order ($) Holding Cost per unit per year ($) 20000 1000 ANNUAL ORDER QUANTITY UNIT PRICE ORDERING COST ANNUAL HOLDING COST TOTAL PRODUCT COST TOTAL ANNUAL COST $100

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!