Question
A company that manufactures household appliances outsources one of the component parts used in its products. The demand for this substance used by the
A company that manufactures household appliances outsources one of the component parts used in its products. The demand for this substance used by the company is constant and equals to 480 units per year. The supplier of the company has offered a price offer according to the table below, with all units at a discount. The firm assumes that the inventory holding cost percentage will be 20% and the ordering cost will be 150$. Find out how many component parts the firm should buy. (30p) Order Quantity 0 Q
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