Amazon sells 10,000 Lenovo PCs every month. Each PC costs $500 and Amazon has an annual holding
Question:
Amazon sells 10,000 Lenovo PCs every month. Each PC costs $500 and Amazon has an annual holding cost of 20 percent. For what fixed cost per order would an order size of 10,000 units be optimal? For what fixed cost per order would an order size of 2,500 units be optimal?
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Step by Step Answer:
To determine the optimal order sizes for Amazon we need to apply the Economic Order Quantity EOQ mod...View the full answer
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