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Question 4 Bright Stationary Inc. has asked you to recommend an economic order quantity for Amy fountain pen ink cartridges. They provided you with the
Question 4 Bright Stationary Inc. has asked you to recommend an economic order quantity for Amy fountain pen ink cartridges. They provided you with the following information 1- The total of shipment and transaction cost for placing an order is 50 TL regardless of the order size. 2- The wholesale cost for a box of cartridges is 12 TL/box for the first 250 boxes, 10 TL/box for the next 1000 boxes, and 9 TL for any additional boxes in excess of 1250 boxes in the same order. 3- The inventory holding cost per box per week is calculated as 2% of the wholesale cost. to be relatively steady at 4- The demand for these cartridges is expecte approximately 120 boxes per week. a) Calculate the economic order quantity and the associated minimum total monthly cost. (20 points)
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