Question
Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 825
Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. Emery uses 825 pounds per month of the? chemical, estimates the holding cost to be 50?% of the purchase price? (because of? spoilage), and estimates order costs to be ?$49 per order. The cost schedules of two suppliers are as? follows: ??????????????????????????????????????????????????????????????????????????? Vendor 1 Vendor 2 ?
?Quantity ?Price/lb ?? Quantity ?Price/lb ?
1-499 ?$17.00 ? 1-399 ? $17.10
? 500-999 ?$16.75 ? 400-799 ?$16.85
? 1,000+ ?$16.50 ? 800-1,199 ?$16.60
? 1,200+ ?$16.25
This exercise contains only parts? a, b, and c. ?a) What is the economic order quantity for each? supplier? For Vendor 1 at ?$17.00?/pound, the economic order quantity is ____________ units ?(round your response to the nearest whole? number).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started