A commercial laundromat products manufacturer wants to consolidate the purchase of all the cardboard boxes it needs
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A commercial laundromat products manufacturer wants to consolidate the purchase of all the cardboard boxes it needs for the detergents, bleaches, and fabric softeners it sells to laundromats. The total demand for all these boxes is 10,000 units per year (a unit = 1,000 packages). Assume that ordering cost is $50 per order and holding cost rate is 20 percent per year. The following unit prices and the associated order quantity ranges are proposed by the most competitive bidder. If this bidder is chosen, what should the order quantity for the boxes be?
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Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
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