The Bucks Grande exhibition

PLEASE ANSWER ALL SECTIONS A THROUGH C

The Bucks Grande exhibition baseball team plays 50 weeks each year and uses an average of 300 baseballs per week. The team orders baseballs from Coopers-Town Inc., a ball manufacturer noted for six-sigma level consistency and high product quality. The cost to order baseballs is $100 per order and the annual holding cost per ball is 33% of the purchase price. Coopers-Town's price structure is shown in the table below. a. How many baseballs should the team buy per order? The team should buy baseballs per order. (Enter your response rounded to the nearest whole number.) b. What is the total annual cost associated with the best order quantity? The total annual cost is $116,632. (Enter your response rounded to the nearest whole number.) c. Coopers-Town Inc. discovers that, owing to special manufacturing processes required for the Buck's baseballs, it has underestimated the setup time required on a capacity-constrained piece of machinery. Coopers-Town adds another category to the price structure to provide an incentive for larger orders and thereby hopes to reduce the number of setups required. If the Bucks buy 15,000 baseballs or more, the price will drop to $6.35 each. Should the Bucks revise their order quantity? A. Yes, the order quantity should be revised to baseballs per order yielding the total annual cost of $ (Enter your responses rounded to the nearest whole number.) B. No, the same quantity should be ordered