CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine
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CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to "determine the order quantity, Q , to meet the annual demand at the lowest cost. The price of copper "depends on the quantity ordered. Here are price-break and other data for the problem:
Price of copper
$.82 per pound up to 3.499 lbs
$.81 per pound for orders between 2,500 and 5,000 lbs
$.81 per pound for orders greater than 5,000 lbs
Annual demand
Holding costs
Ordering costs
Which quantity should be ordered?
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Related Book For
Operations and Supply Chain Management
ISBN: 978-0078024023
14th edition
Authors: F. Robert Jacobs, Richard Chase
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