Question: Problem 13-13 A mail-order house uses 16,930 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The

Problem 13-13 A mail-order house uses 16,930

Problem 13-13 A mail-order house uses 16,930 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. points Skipped 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 $1.25 1.20 eBook 1.15 Print 1.10 References a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity boxes b. Determine the number of orders per year. (Round your answer to 2 decimal places.) Number of order per year A manager receives a forecast for next year. Demand is projected to be 530 units for the first half of the year and 1,000 units for the second half. The monthly holding cost is $2 per unit, and it costs an estimated $55 to process an order. oints a. Assuming that monthly demand will be level during each of the six-month periods covered by the forecast (e.g., 100 per month for each of the first six months), determine an order size that will minimize the sum of ordering and carrying costs for each of the six-month periods. (Round your answers to the nearest whole number.) Skipped eBook Order Size Print Period 1- 6 months 7 - 12 months References units units b. If the vendor is willing to offer a discount of $10 per order for ordering in multiples of 50 units (e.g., 50, 100, 150), would you advise the manager to take advantage of the offer in either period? If so, what order size would you recommend? (Round intermediate calculations to 2 decimal places.) Order Size Period 1- 6 months 7 - 12 months units

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