Question: Please answer quickly and I will be sure to upvote! Ronalds Computers wants to get rid of its old laptops, so it is selling its
Please answer quickly and I will be sure to upvote!
Ronalds Computers wants to get rid of its old laptops, so it is selling its laptops at a price of $1500 per laptop. When a local bookstore approached to purchase in bulk, Campus Computers Inc offered discounted prices. The quantity discount pricing offered is shown below. Given the discounted prices, the bookstore wants to determine if it should take advantage of this discount or order the basic EOQ order size. Show all of your work.
Quantity Discount:
| Option | Quantity | Price |
| 1 | 1 49 | $1,500 |
| 2 | 50 89 | $ 1,000 |
| 3 | 90 and above | $ 800 |
Carrying Cost: 2% of purchase price per year
Ordering Cost: $1,000
Annual Demand: 55
A) Determine the feasible economic order quantity.
B) Which order quantity will minimize the total cost?
C) After calculating the Total Cost for each of your feasible options, should the bookstore take advantage of one of the discounts?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
