Question
Sages Scents uses specially designed and labelled bottles to package its line of natural shampoos and body washes. The following information is available to assist
Sages Scents uses specially designed and labelled bottles to package its line of natural shampoos and body washes. The following information is available to assist managers determine how many bottles to order and when to order.
Annual usage | 446.34 | cases | |
Cost to place an order (K) | $16 | ||
Cost to carry one unit (H) | $3 | ||
Daily usage | 5 | cases | |
Lead time | 5 | days | |
Price per case | $31.00 |
The supplier has offered a quantity discount option.
Quantity | Price per Case | |
1100 cases | $31.00 | |
101250 cases | $29.30 | |
2511,000 cases | $27.70 | |
1,001 + cases | $26.40 |
(a)
Calculate the economic order quantity for Sages Scents current level of production.
Economic order quantity | 69 |
(b)
Evaluate the quantity discounts offered by the supplier.
The lowest cost order size is | 251 |
(c)
Determine the re-order point.
Re-order point | Type your answer here cases _______________ |
a and b are correct please solve c ( the re-order point)
Please only complete if you know what youre doing. thank you
Step by Step Solution
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Step: 1
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Step: 2
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