Part of your business is selling modems for network connection. Demand for modems in your store is
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Question:
Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. Ordering a shipment of modems costs about $500 in processing. A modem costs you $150 and holding a modem in inventory costs you 12% of its cost per year.
Now assume that the supplier gives you the following discount schedule:
0-499 $150
500-999 $149
1000-1999 $148
2000-4999 $147
5000- $146
What is the annual cost, for this quantity, of purchasing the modems?
Related Book For
Project Management The Managerial Process
ISBN: 9781260570434
8th Edition
Authors: Eric W Larson, Clifford F. Gray
Posted Date: