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hmorris21 hmorris21
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6 years ago
As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 350 units. Ordering cost is 20 each time an order is placed, and the holding cost is 30 percent of the per-unit price.
 
  Your supplier provided the following price schedule.
 
  Price per Unit Order Quantity
  4.00 000 - 199
  3.75 200 - 399
  3.50 400 and more
 
  What is the annual cost discrepancy between the optimal order policy and the second best order policy?
  A) Less than 5
  B) Between 5 and 10
  C) Between 10 and 20
  D) More than 20
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PercymatePercymate
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6 years ago
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hmorris21 Author
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6 years ago
This helped my grade so much Perfect
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Yesterday
Thanks for your help!!
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2 hours ago
Thanks
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