Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help need it by tonight. will thumbs up if all steps with work. thanks Millennium Uquors is a wholesaler of sparking wines. its most

please help need it by tonight. will thumbs up if all steps with work. thanks
image text in transcribed
Millennium Uquors is a wholesaler of sparking wines. its most popular product is the French Bete Nolre, which is shipped directly from France. Weekly demand is 50 cases. Mitlennium purchases each case for $100. there is a $275 fixed cost for each order (independent of the quantity ordered), and its annual holding cost is 15 percent. (Do not round intermediate calculations. Round your answer to the nearest whole number) What order quantity minimizes Millennium's annual ordering and holding a. costs? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If Millenilum chooses to order 250 cases each time, what is the sum of its annual ordering and holding costs? (Do not round intemediate calculations. Round your answer to 2 decimal places ) If Millennium chooses to order 75 cases each time, what is the sum of the . ordering and holding costs incurred by each case sold? per case (Do not round intermediate calculations. Round your answer to the nearest whole number) If Milennium is restricted to ordering in multiples of 50 cases (e g,50,100, d. 150, etc), how many cases should it order to minimize its annual ordering and holding costs? (Do not round intermediate calculations. Round your antwer to 2 decimal places) Millonrium is offered a 5.00 percent discount if it purchases at least 1,000 e. cases. If it decides to take advantage of this discount, what is the sum of its annual ordering and holding costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management

Authors: John Pearce, Richard Robinson

14th edition

77862511, 978-0077862510

More Books

Students also viewed these General Management questions