Question
Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume
Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume discounts to its customers:
1750
meals:
$6.75
per meal
751
or more meals:
$4.75
per meal
Annual demand is
1,450
meals, and the cost to place an order is
$12.
Suppose the holding cost is
$5.00
per meal per year. How many meals should Dave's order at a time?
Part 2
Dave's Sporting Goods should order
enter your response here
meals at a time to take advantage of the lower cost per unit.
(Enter
your response rounded to the nearest whole
number.)
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