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Tommy's Machine shop purchases 2,500 units a year of a particular product. The supplier offers the following discounts Quantity Unit price 1 - 699 $15
Tommy's Machine shop purchases 2,500 units a year of a particular product. The supplier offers the following discounts
Quantity | Unit price |
1 - 699 | $15 |
700 or more | $12 |
The order cost is $250 per order and the holding cost is 30% per unit per year.
Calculate the optimal order size and its total cost.
Note: Round up the order size and total cost.
Select one:
a.Q=700 units and TC=$ 32,153
b.None of the provided answers.
c.Q=528 units and TC=$ 28,974
d.Q=528 units and TC=$ 39,872
e.Q=700 units and TC=$ 44,284
f.Q=590 units and TC=$ 42,325
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