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Brown's, distributor of three models of Lawn Mowers, ( A , B , C ) has decided to aggregate and order all three models each
Brown's, distributor of three models of Lawn Mowers, A B C has decided to aggregate and order all three models each time they place an order joint order and delivery The annual demand for the three products is and units respectively. Each model costs the wholesaler five hundred dollars $ A fixed transportation cost of $ is incurred each time an order is delivered. For each model ordered and delivered, an additional fixed cost of $ is incurred for receiving and storage. Mr Brown incurs a holding cost of per cent.
Determine the following:
combined order cost per order marks
optimal order frequency marks
Ili annual order cost mark
annual holding cost marks
total annual cost across all three models marks please show all workings
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