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The consulting agency works with the facility to further analyze their materials. Demand for filter media is sufficient to support quantity discounts in a different
The consulting agency works with the facility to further analyze their materials. Demand for filter media is sufficient to support quantity discounts in a different ordering method. Monthly demand for filter media is 40 rolls per month. Order placement, transportation, and receiving costs is $30 each time an order is placed with the supplier. Holding costs is 30%. The facility can purchase greater quantities of this frequently used filter media to reduce costs and the rolls stack well and will not requiring more storage space. Order Quantity Unit Price/Roll 1 - 25 rolls $127.80 25 - 200 rolls $124.30 200 or more rolls $121.50 How many rolls of filter media should the facility order each time
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