Question

Assume that the following quantity discount schedule is appropriate. If annual demand is 120 units, order...

  1. Assume that the following quantity discount schedule is appropriate. If annual demand is 120 units, order costs are $20 per order, and the annual holding cost is 25% of price, what order quantity would you recommend?

Order Size                   Unit Cost

            0 to 49                       $30.00

            50 to 99                       $28.00

            100 or more                 $26.00

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Apply the EOQ model to the following quantity discount situation in which D = 450 units...
Apply the EOQ model to the following quantity discount situation in which D = 450 units per year, Co = $42, and the annual holding cost rate is 20%. Discount Category Order Size Discount (%) Unit Cost 1   0 to 99 0 $12.00   2   100 or more 3 $11.64   What order quantity do you recommend? If required, round your answer to the nearest whole number. ____
Apply the EOQ model to the following quantity discount situation in which D = 530 units...
Apply the EOQ model to the following quantity discount situation in which D = 530 units per year, Co = $43, and the annual holding cost rate is 30%. Discount Category Order Size Discount (%) Unit Cost 1 0 to 99 0 12 2 100 or more 4 11.52 What order quantity do you recommend? If required, round your answer to two decimal places
Problem 10-21 (Algorithmic) Apply the EOQ model to the following quantity discount situation in which D...
Problem 10-21 (Algorithmic) Apply the EOQ model to the following quantity discount situation in which D = 450 units per year, Co = $42, and the annual holding cost rate is 30%. Discount Category Order Size Discount (%) Unit Cost 1   0 to 99 0 $11.00   2   100 or more 2 $10.78   What order quantity do you recommend? If required, round your answer to the nearest whole number.
Consider the all-units quantity discount schedule below. Price Bracket Quantity Ordered Price Per Unit EOQ at...
Consider the all-units quantity discount schedule below. Price Bracket Quantity Ordered Price Per Unit EOQ at that Price 1 1-1999 $100 3,454 2 2000-3999 $90 3,647 3 4000-5999 $80 3,860 4 6000-7999 $70 4,067 5 8000+ $60 4,510 If you want to take advantage of the price discount in Price Bracket 2, given the required order quantity and calculated EOQ at that price, what is the Total Annual Cost (holding, setup, and purchasing) following the optimal order quantity in that...
A retailer sells iPhones. Annual demand is 4000 units, the order placement cost is $100, and...
A retailer sells iPhones. Annual demand is 4000 units, the order placement cost is $100, and the unit holding cost is $200/yr. What is the economic order quantity? What are annual holding and ordering costs?
3. The annual demand for an item is 10,000 units. The cost to process an order...
3. The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. (a) What is the optimal order quantity for range 1? Quantity Price 1-9 $2.95 per unit 10 - 999 $2.50 per unit 1,000 - 4,999 $2.30 per unit 5,000 or more $1.85 per unit A) 1805.788 B) Needs to be discarded. C) First, all EOQs need to be determined. D) 2254.938...
A retailer purchases a certain type of chemical from a supplier on the following quantity discount...
A retailer purchases a certain type of chemical from a supplier on the following quantity discount schedule: • If the order amount is less than 100 kg.s, the supplier charges $30 per kg. • If the order amount is at least 100 kg.s and less than 500 kg.s, the supplier applies an incremental discount where the first 100 kg. costs $30 per kg. and the remaining amount costs $28 per kg. • If the order amount is at least 500...
The annual demand for an item is 40,000 units. The ordering cost is $40 and the...
The annual demand for an item is 40,000 units. The ordering cost is $40 and the carrying cost is assumed to be 20% of the price. a) What is the optimal order quantity, given the following price schedule for purchasing the item? b) Should we take advantage of the quantity discount? Show your work. Quantity Price 1-1,499 $2.50 per unit 1,500 - 4,999 $2.30 per unit 5,000 or more $2.00 per unit
If the annual demand is 6,000, the order quantity is 1,800, the annual holding costs is...
If the annual demand is 6,000, the order quantity is 1,800, the annual holding costs is 7.00 per unit, and the ordering cost per order is is 75, what is the total of carrying and ordering costs? Round to the nearest penny and do not show any sign (e.g. $234.3845 would be "234.38"). Your Answer:
A quantity discount of 10% in existing unit price is offered, provided order and supply quantity...
A quantity discount of 10% in existing unit price is offered, provided order and supply quantity is at least 500 units. The following information is given: Annual demand - 1000 numbers Procurement cost per order - Rs 100 Inventory carrying cost per annum- 22% of the acquisition cost Existing unit price ( acquisition cost ) Rs 10 What will be the annual saving ( if any) if discount is availed of, instead of ordering out as per EOQ based on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT