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Demand is 20,000 units per month. The holding cost is 6.2% per year. Each order incurs a fixed cost of $400. a. The supplier offers
Demand is 20,000 units per month. The holding cost is 6.2% per year. Each order incurs a fixed cost of $400. a. The supplier offers an all unit discount pricing schema with a price of $5 per unit for orders under 30,000 and a price of $4.9 for all orders of 30,000 or more. How many units should be ordered per replenishment? b. Suppose that the supplier offers a marginal unit discount pricing schema with a price of $5 per unit for the first 30,000 and a price of $4.9 per unit for each unit above 30,000 in an order. How many units should be ordered per replenishment? 20:57
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