The 21,000-seat Air East Arena houses the local professional ice hockey, basketball, indoor soccer, and arena football
Question:
Order Quantity (boxes) Price per Box
2000–6999 ......... $47
7000–11,999 ........43
12,000–19,999 ........41
20,000+ ..........38
With the name of the arena and the various team logos on them. The local container cup manufacturer that supplies the cups in boxes of 100 has offered arena management the following discount price schedule for cups: The annual demand for cups is 2.3 million, the annual carrying cost per box of cups is $1.90, and ordering cost is $320. Determine the optimal order quantity and total annual inventory cost.
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Related Book For
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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