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The demand for H&C's product is 26000 boxes per year. H&C has a holding cost of 20 percent and incurs a fixed cost of $90
The demand for H&C's product is 26000 boxes per year. H&C has a holding cost of 20 percent and incurs a fixed cost of $90 for each replenishment order. The cost is $5 per box. If a trade promotion lowers the price of the product to $4 for a month (d = $1 discount), how much should H&C order given the short-term trade promotion (Qd)
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