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Dominick's supermarket chain sells Nut Flakes, a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 1000 boxes per week.
Dominick's supermarket chain sells Nut Flakes, a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 1000 boxes per week. Dominick's has a holding cost of 25 percent and incurs a fixed trucking cost of $200 for each replenishment order it places with Tastee. Tastee normally charges $2 per box of Nut Flakes. Tastee runs a trade promotion, lowering the price of Nut Flakes to $1.80 for a month. Continuing on with Dominick's supermarket from above, what is the optimal lot size with the promotion? Answer is not 6799
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