Question: Please solve this problem using below formula and the offer is offered for one month. Compute EOQ with promotion Dominick's supermarket chain sells Nut Flakes,
Please solve this problem using below formula and the offer is offered for one month. Compute EOQ with promotion
Dominick's supermarket chain sells Nut Flakes, a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 1000 boxes per week. Dominick's has a holding cost of 25 percent and incurs a fixed trucking cost of $200 for each replenishment order it places with Tastee.
Tastee normally charges $2 per box of Nut Flakes. Tastee runs a trade promotion, lowering the price of Nut Flakes to $1.80 for a month.
What is the optimal lot size for Dominick's the promotion? Assume 52 weeks in a year. using formula
| (Cell D10) = dD/(C-d)h+(CQ^)/(C-d) |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
