Meena Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of
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Meena Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $25 per order. If Purushottama Meena, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Meena take the quantity discount?
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Operations Management Sustainability And Supply Chain Management
ISBN: 9780137476442
14th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson
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