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6 . Krafty City is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Information
Krafty City is a large retailer that sells power tools and other hardware supplies. One of its products is the KraftyMan workbench. Information on the workbench is as follows: Annual Demand Holding cost $ per year Ordering cost $ per order a What is the economic order quantity for the workbench? b Suppose that KraftyCity has to pay $ per workbench for orders under but only $ per workbench for orders of or more. What order quantity should KraftyCity use? a Is there any difference between the optimal annual cost between a and b If so what is the percent difference?
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