Question
Bank Drugs sells Jami Michelle lipstick. Jami Michelle Company offers a 6% discount on orders of at least 500 tubes, a 10% discount on orders
Bank Drugs sells Jami Michelle lipstick. Jami Michelle Company offers a 6% discount on orders of at least 500 tubes, a 10% discount on orders of at least 1,000 tubes, a 12% discount on orders of at least 1,800 tubes, and a 15% discount on orders at least 2,500 tubes.
Bank sells an average of 42 tubes of Jami Michelle lipstick weekly. The normal price paid by Bank Drugs is $1 per tube. If it costs Bank $42 to place an order, and Bank's annual holding cost rate is 29%, determine the optimal order policy for Bank Drugs. (Assume the store is open 52 weeks per year. Round your answer to the nearest whole number.)
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