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A store sells 1000 tennis balls every three months. Currently store orders 2000 units each time an order is placed. At this order quantity, store
A store sells 1000 tennis balls every three months. Currently store orders 2000 units each time an order is placed. At this order quantity, store can buy the tennis balls at $0.60 per unit. It costs $50 to place an order and the annual inventory-carrying cost is estimated to be 25 percent of the purchasing cost. The quantity discounts offered by the supplier are listed below: Order Quantity Discount Up to 750 751 -1500 10% 1500 or more 20% Review the current ordering policy and recommend a new policy if needed. Report total costs for the current policy as well as for the recommended policy - if applicable
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