Rosen Inc. has a monthly demand of 80 airport metal detectors. The unit cost of a...
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Rosen Inc. has a monthly demand of 80 airport metal detectors. The unit cost of a typical detector is $333.00. Holding cost is estimated to be 15.5% of the unit cost, and the ordering cost is $25 per order. a. What is the optimal order quantity (EOQ), given the current ordering policy (without price breaks)? [Select] b. What is the total cost of the current ordering policy (including the unit cost? [Select] If Susan Rosen, the owner, orders in quantities of 360 or more she can get a 7% discount on the cost of the detectors. c. What price should Rosen pay per unit, considering the discount? $ [Select] d. What is the total cost at the discounted behavior? $ [Select] e. What option should Rosen choose? [Select] Rosen Inc. has a monthly demand of 80 airport metal detectors. The unit cost of a typical detector is $333.00. Holding cost is estimated to be 15.5% of the unit cost, and the ordering cost is $25 per order. a. What is the optimal order quantity (EOQ), given the current ordering policy (without price breaks)? [Select] b. What is the total cost of the current ordering policy (including the unit cost? [Select] If Susan Rosen, the owner, orders in quantities of 360 or more she can get a 7% discount on the cost of the detectors. c. What price should Rosen pay per unit, considering the discount? $ [Select] d. What is the total cost at the discounted behavior? $ [Select] e. What option should Rosen choose? [Select]
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To answer these questions we can use the Economic Order Quantity EOQ model and take into account the ... View the full answer
Related Book For
Operations Management Sustainability And Supply Chain Management
ISBN: 9780137476442
14th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson
Posted Date:
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