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A flowers shop uses 1,100 flowers weekly. Everytime they need to order more material, it costs $180. The flowers need to
Posted: Fri May 20, 2022 7:39 am
by answerhappygod
- A Flowers Shop Uses 1 100 Flowers Weekly Everytime They Need To Order More Material It Costs 180 The Flowers Need To 1 (38.35 KiB) Viewed 57 times
A flowers shop uses 1,100 flowers weekly. Everytime they need to order more material, it costs $180. The flowers need to be stored 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. Find the economic order quantity. b. Calculate the average annual cost for the optimal solution. I