Question: Part B is correct. I just need help with part C. Thank you! Item cost Order cost Annual holding cost (%) Annual demand Average demand


Part B is correct. I just need help with part C. Thank you!
Item cost Order cost Annual holding cost (%) Annual demand Average demand $ 9.00 $202.00 28 24,000 480 Standard deviation of weekly demand Lead time Service probability 20 units 1 week 90% / order % of item cost units /week b. Determine the annual holding and order costs. (Do not round any intermediate calculations. Round your final answers to 2 decimal places.) $ Holding cost Ordering cost 2,472.12 2,472.12 $ c. Assume a price break of $50 per order was offered for purchase quantities of 2,000 units per order. If you took advantage of this price break, how much would you save annually? (Do not round any intermediate calculations (including number of setups per year). Round your final answer to 2 decimal places.) Annual savingsStep by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
