Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Carla Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $28.00 300-749 cases $26.97 750-1,499 cases
Carla Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $28.00 300-749 cases $26.97 750-1,499 cases $25.82 1,500 + cases $24.85 The economic order quantity is 136 cases and the annual usage is 25,894 cases. The ordering cost (K) is $5 per order and the carrying cost of inventory (H) is $14 per unit. Determine the most cost-effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) Most cost effective order quantity 1500 Total Cost $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started