A flowers shop consumes 1,100 flowers on a weekly basis. Every time they need to order more material costs $180. The flo

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A Flowers Shop Consumes 1 100 Flowers On A Weekly Basis Every Time They Need To Order More Material Costs 180 The Flo 1 (16.47 KiB) Viewed 112 times

A flowers shop consumes 1,100 flowers on a weekly basis. Every time they need to order more material costs $180. The flowers need to be storage in optimal conditions so there is a carrying cost rate of 4% per year. The vendor of flowers has offered the following price breaks: for orders of more than 5,000 flowers, will cost is $1.85/unit; for orders between 1,000 and 5,000 flowers, will cost is $2.50/unit; and orders less than 1,000 flowers will have a cost of $3.10/unit a. (10 points). Find the economic order quantity. b. (8 points). Calculate the average annual cost for the optimal solution.