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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Related Book For
Operations And Supply Chain Management
ISBN: 9780357131695
2nd Edition
Authors: David A. Collier, James R. Evans
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