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8. Steamy Speedboats has an annual demand for 1,500 speedboats. Its supplier offers quantity discounts to promote larger order quantities. The cost to place an
8. Steamy Speedboats has an annual demand for 1,500 speedboats. Its supplier offers quantity discounts to promote larger order quantities. The cost to place an order is $300, and the holding rate is 32% of the purchase cost. The purchase cost for each speedboat is based on the price schedule given below. Compute the following: a. optimal order quantity b. annual purchase cost c. annual holding cost d. annual order cost e. total annual inventory cost | |||||
Order Quantity | Price per Unit | ||||
1-50 | 18000 | ||||
51-100 | 18000 | ||||
101-150 | 17400 | ||||
151 and above | 16800 |
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