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Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noire which is shipped directly from France. Weekly demand
Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noire which is shipped directly from France. Weekly demand is for 45 cases. Millennium purchases each case for $105, there is a $275 fixed cost for each order (independent of the quantity ordered) and their annual holding cost is 25 percent. | ||||
a. | What order quantity minimizes Millenniums annual ordering and holding costs? | not attempted | cases | |
b. | If Millennium chooses to order 300 cases each time, what is the sum of their annual ordering and holding costs? | not attempted | ||
(Round your answer to 2 decimal places.) | ||||
c. | If Millennium chooses to order 75 cases each time, what is the sum of the ordering and holding costs incurred by each case sold? | not attempted | per case | |
d. | If Millennium is restricted to order in multiples of 50 cases (e.g., 50, 100, 150, etc.) how many cases should they order to minimize their annual ordering and holding costs? | not attempted | cases | |
e. | Millennium is offered a 5.00% discount if they purchase at least 1,000 cases. If they decide to take advantage of this discount, what is the sum of their annual ordering and holding costs? | not attempted |
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