- Please Help Me With This Inventory Management Question 1 (85.2 KiB) Viewed 91 times
Please help me with this inventory management question
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answerhappygod
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Please help me with this inventory management question
Please help me with this inventory management question
A 23 000 seat stadium houses the local professional soccer, cricket and football teams. Stadium vending annually sells large quantities of drinks in plastic cups, with the name of the stadium and the various team logos on them. The local cup manufacturer that supplies the cups in boxes of 100 has offered stadium management the following discount price schedule for cups: Order quantity (boxes of 100) 2,000-6,999 7,000-11,999 12,000-19,999 20,000 and above Price per box $47 $43 $41 $38 The annual demand for cups is 2.3 million (23 000 boxes), the annual carrying cost is $1.90 per box of cups, and the ordering cost is $320. The goal in this question is to determine the optimal order quantity and total annual inventory cost. a. Find the economic order quantity Q* for each group.
A 23 000 seat stadium houses the local professional soccer, cricket and football teams. Stadium vending annually sells large quantities of drinks in plastic cups, with the name of the stadium and the various team logos on them. The local cup manufacturer that supplies the cups in boxes of 100 has offered stadium management the following discount price schedule for cups: Order quantity (boxes of 100) 2,000-6,999 7,000-11,999 12,000-19,999 20,000 and above Price per box $47 $43 $41 $38 The annual demand for cups is 2.3 million (23 000 boxes), the annual carrying cost is $1.90 per box of cups, and the ordering cost is $320. The goal in this question is to determine the optimal order quantity and total annual inventory cost. a. Find the economic order quantity Q* for each group.