Question
Johnsons Juice sells bottles of Keep Me Awake During Class fruit juice to college students. Annual demand is 90000 bottles. The company uses an annual
Johnsons Juice sells bottles of Keep Me Awake During Class fruit juice to college students. Annual demand is 90000 bottles. The company uses an annual holding cost percentage of 16.5%, it its setup cost is $45 per order. The current price per bottle from the supplier is $.6, and Johnsons Juice resells it to customers for $2.00 each. However, the supplier has notified Johnsons Juice that starting next week, the purchase price will rise to $1.12 due to tariffs imposed by the government. Johnsons inventory of bottles is about to be depleted. (Assume that the bottles are so full of chemicals that the drinks never expire.) Question content area bottom Part 1 a. Which inventory model fits the best to this problem? A. Lumpy demand model B. Incremental quantity discounts model C. All-units quantity discounts model D. One-time sale model b. Johnson's Juice should purchase enter your response here bottles in the next order (round your response to the nearest integer).
Johnson's Juice sells bottles of "Keep Me Awake During Class" fruit juice to college students. Annual demand is 90,000 bottles. The company uses an annual holding cost percentage of 16.5%, it its setup cost is $45 per order. The current price per bottle from the supplier is $0.6, and Johnson's Juice resells it to customers for $2.00 each. However, the supplier has notified Johnson's Juice that starting next week, the purchase price will rise to $1.12 due to tariffs imposed by the government. Johnson's inventory of bottles is about to be depleted. (Assume that the bottles are so full of chemicals that the drinks never expire.) a. Which inventory model fits the best to this problem? A. Lumpy demand model B. Incremental quantity discounts model C. All-units quantity discounts model D. One-time sale modelStep by Step Solution
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