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Quarks sells three types of muesli, the Shoko, the Fruit & Nut, and the Berries Mix. Annual demands for the three products are DS =
Quarks sells three types of muesli, the Shoko, the Fruit & Nut, and the Berries Mix. Annual demands for the three products are DS for the Shoko, DF units for the Fruit & Nut, and DB units for the Berries Mix. Each type costs Quarks $ per package. A fixed transportation cost of $ is incurred each time an order is delivered. For each type ordered and delivered on the same truck, an additional fixed cost of $ per type is incurred for receiving and storage. Quarks incurs an annual unit holding cost of percent. Suppose Quarkss Shoko supplier now offers quantity discount. If Quarks orders more than including packages in a single order, it will be charged a discounted price for all units ordered.
a If the discount rate is find the optimal order quantity and total annual cost including fixed ordering cost, variable ordering cost, and inventory holding cost. pt
b If the discount rate is find the optimal order quantity and total annual cost including fixed ordering cost, variable ordering cost, and inventory holding cost. pt
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