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1.5p 23 A furniture manufacturer offers 20% discount on the purchase price for its sofas if customers buy sufficiently large amounts. To qualify for this
1.5p 23 A furniture manufacturer offers 20% discount on the purchase price for its sofas if customers buy sufficiently large amounts. To qualify for this discount, an order should consist of at least 25 products. The base price (that is, the price without discount) charged by the manufacturer is 3000 per product. The ordering costs for Sofas.com, one of the manufacturer's customers, equal 2500 per order. Sofas.com's annual holding costs are 15% of the purchase price. Sofas.com intends to buy 90 products per year. What is the optimal order quantity for Sofas.com (rounded to a whole number) at the base price? 1.5p b What is the optimal order quantity for Sofas.com (rounded to a whole number) at the discounted price? 1.5p b What is the optimal order quantity for Sofas.com (rounded to a whole number) at the discounted price? 2.0p C What is the best order quantity for Sofas.com if it wants to minimise costs? Motivate your answer. +7
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