Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sage Co. has the following quantity discount policy with its supplier. Quantity Price per Unit 1-499 units $15.00 500-999 units $14.80 1,000-1,999 units $14.25 2,000
Sage Co. has the following quantity discount policy with its supplier. Quantity Price per Unit 1-499 units $15.00 500-999 units $14.80 1,000-1,999 units $14.25 2,000 units + $13.45 The economic order quantity is 970 units and the annual usage is 21,562 units. The ordering cost (K) is $24 per order and the carrying cost of inventory (H) is $1.10 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) The most cost effective order quantity is 2000 X Total Cost 291367.64
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started