Eclipse Company uses 810 tankloads a year of a specific input material. The tankloads are delivered by

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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.)

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Related Book For  book-img-for-question

Cost Management Strategies For Business Decisions

ISBN: 12

4th Edition

Authors: Ronald Hilton, Michael Maher, Frank Selto

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