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a mail-order house uses 18000 boxes a year. carrying costs are $0.60 per box per year and ordering costs are $96. the following price schedule
a mail-order house uses 18000 boxes a year. carrying costs are $0.60 per box per year and ordering costs are $96. the following price schedule applies.
number of boxes price per box
1000 to 1999. $1.25
2000 to 4999. $1.20.
5000 to 9999. $1.15
a.what is the optimal order quantity (one decimal)
b.what is the total cost of ordering,carrying and purchasing cost of the optimal order quantity( one decimal)
c. how many orders will the mail-order house have to make during the year (one decimal)
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