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Title: Operations management question-Determine an order quantity that will minimize total cost?
Post by: jgosset2 on Apr 5, 2017
A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering costs are $50, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4,900 pulleys.

Determine an order quantity that will minimize total cost. (Round "Q" values to the nearest whole number and all other calculations to 2 decimal places.)

Options(choose 1):
A. 4,000 units
B. 4,000 or 6,000 units
C. 1,500 units
D. 400 units
E. 495 or 1,000 units


Title: Re: Operations management question-Determine an order quantity that will minimize total cost?
Post by: bio_man on Apr 5, 2017
Hi again, here's my answer


Title: Re: Operations management question-Determine an order quantity that will minimize total cost?
Post by: Eren on Jan 22, 2021
Thanks


Title: BFSF: Operations management question-Determine an order quantity that will minimize total cost?
Post by: drago dan on Mar 7, 2024
Thx