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5. The annual demand for a certain product sold in a department store is 1,000 units. Ordering cost per order is $50, holding rate is
5. The annual demand for a certain product sold in a department store is 1,000 units. Ordering cost per order is $50, holding rate is 40%, and unit cost is $200. The department store currently is ordering every two months, but now is offered the following quantity discount scheme: For an order of up to 'L-1' units no discount. For an order from L units up to 299 units-a discount of 25%, and for a larger order - a discount of 30%. 5.1 As mentioned, the discount break points are: 1, 'l', and 300. The total cost for Level 1 (that starts at Land ends at 299) is 153500 dollars. Find 'l'. Use the template and Data Table to find L(this is a one dimensional Data Table). Start at L=25 with increments of 25. You can also use Goal Seek instead of Data Table. If you use Data Table, show it in the Answer sheet 5.2 Would the store qualify for any discount under the current '2-month ordering' policy? Assume the discount break points are 1, 200, and 300. a. No discount b. 25% discount c. 30% discount d. Can't answer, because Q is unknown 5. The annual demand for a certain product sold in a department store is 1,000 units. Ordering cost per order is $50, holding rate is 40%, and unit cost is $200. The department store currently is ordering every two months, but now is offered the following quantity discount scheme: For an order of up to 'L-1' units no discount. For an order from L units up to 299 units-a discount of 25%, and for a larger order - a discount of 30%. 5.1 As mentioned, the discount break points are: 1, 'l', and 300. The total cost for Level 1 (that starts at Land ends at 299) is 153500 dollars. Find 'l'. Use the template and Data Table to find L(this is a one dimensional Data Table). Start at L=25 with increments of 25. You can also use Goal Seek instead of Data Table. If you use Data Table, show it in the Answer sheet 5.2 Would the store qualify for any discount under the current '2-month ordering' policy? Assume the discount break points are 1, 200, and 300. a. No discount b. 25% discount c. 30% discount d. Can't answer, because Q is unknown
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