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sinnefoula sinnefoula
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6 years ago
The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are D = 600 units, S = $20/order and I = 30% of item price. Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost?

Quantity   1 to 49   50 to 249   250 and up
Price   $5.00 per unit   $4.50 per unit   $4.10 per unit
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Operations Management

Operations Management


Edition: 10th
Authors:
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AlmeyricAlmeyric
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sinnefoula Author
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6 years ago
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