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Design Layout Halwings Group Limited wishes to achieve excellent stock management so as to achieve a marvelous profit this year. Its management estimates the
Design Layout Halwings Group Limited wishes to achieve excellent stock management so as to achieve a marvelous profit this year. Its management estimates the demand for its products to be 1000 units per annum, with a purchase price of shs. 10 per unit, a holding cost of shs.0.75 per unit and ordering cot of shs.15 per order. The supplier of the stocks has presented Halwings Group Limited with the following range of prices of the stocks: Quantity Price Per Due to its storage capacity, the Order size (in units) Discount Unit (Sha) (%) company can only purchase an amount of up to 600 units. Currently, the company is 0-99 0 10 purchasing at optimum stock 100-199 1 9.90 quantity to enable it achieve its objectives. The management is 200-399 2 9.80 considering whether to shift 400-599 4 9.60 from the current stock purchase policy to purchase the 600-799 5 9.50 maximum stocks. 800-899 5 9.50 900-999 5.5 9.45 Required.
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