Eclipse Company uses 810 tankloads a year of a specific input material. The tankloads are delivered by
Question:
Eclipse Company uses 810 tankloads a year of a specific input material. The tankloads are delivered by rail to a siding on the company property. The supplier is offering a special discount for buyers of large quantities. The schedule is as follows:
Quantity Ordered Percentage
(tankloads) Discount NOs or. te scnceeunecenatnesshoe antenrnioeserte romeame sys 0 ZOLLOS Sere s Mean sce arcesersdeenerae ueanvasnesae nnn,er ! 2 SORTA rr snacespnu asnettnndseaocnrcamenbecnnsesn stea se 5 NSOVAM GNM ON Oistecnnvaamanrnae contenant snare 6 Ordering costs amount to $500, and carrying costs are $450 per tankload and are not affected by the discounts.
Each tankload costs $1,500.
Required Compute the optimal order quantity. (Round to the nearest whole number.)
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto