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The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her
The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.
For a small order pieces or less her vendor quotes a price of $piece
If she orders to pieces the price drops to $piece
to pieces brings the price to $piece and
and above reduces the price to $piece
Lisas order costs are $ per order, her annual holding costs are and the annual demand is pieces. For the best optionthe best option is the price level that results in an EOQ within the acceptable range:
Part
a What is the optimum ordering quantity?
enter your response here units round your response to the nearest whole number
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