A manufacturer procures a subassembly from a supplier. The annual demand is 120,000 units, cost per unit

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A manufacturer procures a subassembly from a supplier. The annual demand is 120,000 units, cost per unit is $6, inventory-carrying charge is 10 percent, and the order cost is $200. For orders between 10,000 but less than 30,000, a three percent discount is applied, and for orders exceeding 30,000, a five percent discount is applied. What is the optimal order quantity? Use the Quantity Discount Excel template in MindTap to find your answer.

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Operations And Supply Chain Management

ISBN: 9780357131695

2nd Edition

Authors: David A. Collier, James R. Evans

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