ABC Store sells steel mugs. It supplier provides discount to ABC Store based on the quantity ABC Store buys. (**If deman
Posted: Fri May 20, 2022 6:05 am
ABC Store sells steel mugs. It
supplier provides discount to ABC Store based on the quantity ABC
Store buys. (**If demand from ABC is below 1000, no discount,
price=$5.00; if demand between 1000 and 1999, price=$4.8; if demand
larger than 2000, price=$4.75) Ordering cost is $49 per order,
annual demand is 5000 mugs, inventory carrying cost is charged as a
percent of the cost is 20%. What order quantity will minimize the
total inventory cost?
supplier provides discount to ABC Store based on the quantity ABC
Store buys. (**If demand from ABC is below 1000, no discount,
price=$5.00; if demand between 1000 and 1999, price=$4.8; if demand
larger than 2000, price=$4.75) Ordering cost is $49 per order,
annual demand is 5000 mugs, inventory carrying cost is charged as a
percent of the cost is 20%. What order quantity will minimize the
total inventory cost?