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 6:07 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?
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?