The company named COPA VACIA find out that demand for one of its products is approximately...

 

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The company named COPA VACIA find out that demand for one of its products is approximately stable at 10 units each week throughout the duration of a 50-week year. Order placement costs about €150, including delivery. Inventory carrying charge is 20% of unit cost. The item's supplier offers a starting price of €250 per unit for 0-50 units, with discounts of 10% for purchases of at least 50-150 units, 15% for sales of at least 150-500 units, and 20% for orders of at least 500 units or more. What is the optimal order size for the product? The company named COPA VACIA find out that demand for one of its products is approximately stable at 10 units each week throughout the duration of a 50-week year. Order placement costs about €150, including delivery. Inventory carrying charge is 20% of unit cost. The item's supplier offers a starting price of €250 per unit for 0-50 units, with discounts of 10% for purchases of at least 50-150 units, 15% for sales of at least 150-500 units, and 20% for orders of at least 500 units or more. What is the optimal order size for the product?

Answer rating: 100% (QA)

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