A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of...
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A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The price schedule is: Quantity purchased Price per unit fewer than 525 $80 at least 525 $75 Suppose the monthly demand at a retail store that buys from this retailer and resells is 175 units. The supplier charges a fixed cost of $180 per shipment. The cameras are expected to sell well for multiple seasons, so multiple replenishment opportunities are possible. If the holding cost is 4.5%, and the retailer implements periodic review to achieve 90% service level, how much should it order it it has 450 units in stock? (Note: Use the z-table from the lecture notes, and choose the closest answer.) O 803 O 450 O 250 O 353 O O O O A supplier for an electronics store has introduced quantity discounts to encourage larger order quantities of cameras. The price schedule is: Quantity purchased Price per unit fewer than 525 $80 at least 525 $75 Suppose the monthly demand at a retail store that buys from this retailer and resells is 175 units. The supplier charges a fixed cost of $180 per shipment. The cameras are expected to sell well for multiple seasons, so multiple replenishment opportunities are possible. If the holding cost is 4.5%, and the retailer implements periodic review to achieve 90% service level, how much should it order it it has 450 units in stock? (Note: Use the z-table from the lecture notes, and choose the closest answer.) O 803 O 450 O 250 O 353 O O O O
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
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