Question
An outdoor equipment manufacturer sells a rugged water bottle to complement its product line. They sell this item to a variety of sporting goods stores
An outdoor equipment manufacturer sells a rugged water bottle to complement its product line. They sell this item to a variety of sporting goods stores and other retailers. The manufacturer offers quantity discounts per the following discount schedule:
Option Plan | Quantity | Price |
---|---|---|
A | 1 - 2,499 | $4.50 |
B | 2,500 - 4,399 | $4.25 |
C | 4,400+ | $3.60 |
A large big-box retailer expects to sell 3,400 units this year. This retailer estimates that it incurs an internal administrative cost of $240 each time it places an order with the manufacturer. Holding cost for the retailer is $70per case per year. (There are 36 units or water bottles per case.) Based on this information, and not taking into account any quantity discount offers, what is the calculated EOQ (in units)? (Display your answer to the nearest whole number.)
Based on this information, sort each quantity discountplan from left to right by dragging the MOST preferredoption plan tothe left, and the LEAST preferred option plan to the right:
Option Plan C
Option Plan A
Option Plan B
For the MOST preferredoption, what will be the annual material cost? (Display your answer to the nearest whole number.)
For the MOST preferredoption, what will be theannual ordering cost?(Display your answer to the nearest whole number.)
For the MOST preferredoption, whatwill be the average inventory? (Display your answer to the nearest whole number.)
For the MOST preferredoption, whatwill be the totalannual inventory cost? (Display your answer to the nearest whole number.)
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