Home / Questions / Based on the information in the chart I calculated below, what is the Answer to A & B. A)
Based on the information in the chart I calculated below, what is the Answer to A & B.
A) What order quantity will allow the wholesale distributor to minimize total annual inventory costs (Purchase Cost + Ordering Cost + Holding Cost) by taking advantage of the proposed discount pricing?
B) What is the total annual cost (Purchase Cost + Ordering Cost + Holding Cost) based upon taking advantage of the proposed discount pricing?
Quantity Discount Model
VariablesDiscount NumberDiscount Minimum QtyDiscount Maximum QtyDiscountDiscount CostEOQQPurchase CostOrdering CostHolding CostTotal CostAnnual demandD5,4751010000.00%$ 125.00661.8157661.82$ 684,375.00$827.27$ 827.27$ 686,029.54Purchase cost per unitC$125.0021001200010.00%$ 112.50697.6151001.00$ 615,937.50$546.95$ 1,126.13$ 617,610.58Holding or carrying cost per unit per yearCh$2.5032001None15.00%$ 106.25717.83992001.00$ 581,718.75$273.61$ 2,126.06$ 584,118.43Ordering cost per orderCo$100Holding or carrying cost as a percentage of unit costI2.00%
Dec 03 2019 View more View Less
Matt has $15 in income that he devotes entirely towards caffeine purchases, specifically coffee and tea. Tea costs $3/cup and coffee costs $4/cup. Also, tea is subject to...Jun 01 2021
For the marketing plan exercise in Chapter 6,6 you considered the consumer decision-making process as it applies to your marketing plan; in Chapter 7,7 you analyzed your ...Jul 23 2021
Is NaHSO4 an acid or base?Jul 30 2021
In which of the following stages of new product development is the brainstorming technique used? [A]Commercialization [B]Concept testing [C]Market analysis [D]Idea generationDec 19 2017
The capital accounts of Trent Henry and Tim Chou have balances of $160,000 and $100,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnersh...May 05 2021
Els Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $1,038.05 and No. 5893...Jul 20 2020
Although many employers allow casual attire, not all employers and customers are happy with the results. To learn more about the implementation, acceptance, and effects o...Aug 20 2021
Making high-stakes insurance decisions. The Journal of Economic Psychology (Sept. 2008) published the results of a high-stakes experiment where subjects were asked how mu...Aug 07 2020
Identifying qualitative factors for a special order decision Required Describe the qualitative factors that Roddam should consider before accepting the special order ...Jun 19 2020
FIND STRESS VECTORS ON THE BOUNDARYMay 26 2020