Question: PHL manufacturing assembles security monitors. it purchases 900 black and white cathode ray tubes per month at $80 each. ordering costs are $30 and annual
PHL manufacturing assembles security monitors. it purchases 900 black and white cathode ray tubes per month at $80 each. ordering costs are $30 and annual carrying costs are 25% of the purchase price. a) determine the optimal quantity. b) find the total annual cost of ordering and carrying the inventory. c) if the supplier offer a price of $79 per tube for ordering 1200 tubes in a lot, would you evaluate and advise PHL to take advantage of the offer
Step 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
