Question: Problem 13-13 A mail-order house uses 17.710 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 17.710 boxes a year. Carrying costs are 60 cents per box a year. and ordering costs are $96. 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 $1.25 120 1.15 1.10 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
