Service

Chat Now

Suppose that the annual demand for a component is approximately 65000 units The company orders the component from a supplier

Suppose that the annual demand for a component is approximately 65000 units The company orders the component from a supplier

Suppose that the annual demand for a component is approximately 65,000 units. The company orders the component from a supplier who has offered the following quantity discount schedule. If the company's carrying charge is 28% of the item's price and the cost per order is $350, determine the order quantity that would minimize the total related inventory costs for this component. Order Quantity Price per Unit 0-999 $39 1,000 1,499 $36 1,500-999 3,000 or more $33 $30 A) 5,400 units B) 3,000 units C) 2,478 units D) 1,279 units

abhinav behal 02-Mar-2020

Answer (UnSolved)

question Get solution