Question: Problem 12-13 (Algo) A mail-order house uses 15,875 boxes a year. Carrying costs are 79 cents per box a year, and ordering costs are $97.

Problem 12-13 (Algo) A mail-order house uses

Problem 12-13 (Algo) A mail-order house uses 15,875 boxes a year. Carrying costs are 79 cents per box a year, and ordering costs are $97. The following price schedule applies. Number of Boxes 1,000 to 1,999 2,000 to 4,999 5,000 to 9,999 10,000 or more Price per Box $1.45 1.35 1.25 1.20 Click here for the Excel Data File a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity 5,000 boxes b. Determine the number of orders per year. (Round your answer to 2 decimal places.) Number of order per year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!