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1 3 . Rapid Grower, the supplier of plant food for Greens in Problem 1 2 , has offered the following quantity discounts. If the
Rapid Grower, the supplier of plant food for Greens in Problem has offered the following quantity discounts. If the nursery places orders of bags or less, the cost per bag is $ For orders of to bags, the cost per bag is $ For orders over bags, the cost is $ per bag. Greens estimates its holding cost to be percent of the unit price. Determine the most costeffective ordering policy for Greens.
EOQatpriceof$bag
bags
infeasiblequantity
EOQatpriceof$bag
bags
feasiblequantity
EOQatpriceof$bag
bags
infeasiblequantity
Total cost at feasible EOQ amounttimes $
Total cost at Q: times $
Optimal ordering policy is to order bags at a time.
In an effort to reduce its inventory, Rapid Grower is offering Greens, a local nursery Problems and two additional price breaks to consider. If the nursery orders a threemonth supply, the cost per bag is $ If Greens orders a sixmonth supply, the cost per bag is $ Should Greens change its order quantity calculated in Problem
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