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Ordering a product 100 10% 1500 Inputs Ordering cost Annual interest rate Annual demand Purchasing price schedule: Order quantity Up to 399 400 to 699
Ordering a product 100 10% 1500 Inputs Ordering cost Annual interest rate Annual demand Purchasing price schedule: Order quantity Up to 399 400 to 699 700 to 999 1000 or more The ToysRus Company buys a product using the price schedule given in the Excel file. The company estimates the annual holding cost per unit at 10% of the purchase price and the ordering cost at $100 per order. The annual demand is 1500 units. Determine: - how often the company should order, - the optimal order quantity and - the corresponding price. Unit cost, $ 20 19.7 19.5 19.4 Order quantity Q Orders per year Price Total annual cost
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