Georgia Products offer the following discount schedule for its 4- by 8-foot sheets of good-quality plywood: ORDERUNIT
Question:
Georgia Products offer the following discount schedule for its 4- by 8-foot sheets of good-quality plywood:
ORDERUNIT COST ($)
9 sheets or less...........................18
10 to 50 sheets........................17.5
More than 50 sheets .............17.25
Home Sweet Home Company orders plywood from Georgia Products. Home Sweet Home has an ordering cost of $45. The carrying cost is 20%, and the annual demand is 100 sheets. What do you recommend?
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Computation of the folloiwng Demand rate D 100 Ordering cost C o 4500 Carrying cost I 2000 Range 1 ...View the full answer
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