Demand for phones at Amazon is 5,000 per month. The holding cost as Amazon is 25 percent and the company incurs a fixed cost of
Demand for phones at Amazon is 5,000 per month. The holding cost as Amazon is 25 percent and the company incurs a fixed cost of $500 for each order placed. The supplier offers a marginal unit quantity discount with a price of $200 per phone for the first 10,000 phones in an order, a price of $195 for the next 10,000 phones in the order, a price of $190 for the quantity above 20,000 in the order. How many phones should amazon order per replenishment?
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Annual Demand 5000 per month 12 months 60000 Ordering Cost 50000 Carrying Cost 25 of price 200 5000 ...
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Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
9th Edition
013302184X, 978-0133021844
