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
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 1-300 meals: $5.75 per meal 301 or more meals: $4.25 per meal Annual demand is 1,550 meals, and the cost to place an order is $16. Suppose the holding cost is $5.00 per meal per year. How many meals should Dave's order at a time? Dave's Sporting Goods should order 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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