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tried to set up for a banquet for 5 0 0 people, they did not have enough knives. She decides she needs to order some
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.
Lisa's order costs are $ per order, her annual holding costs are and the annual demand is pieces. For the best option the best option is the price level that results in an EOQ within the acceptable range:
a What is the optimum ordering quantity? units round your response to the nearest whole number
b What is the annual holding cost? $ round your response to two decimal places
c What is the annual ordering cost? $ round your response to two decimal places
d What are the annual costs of the silverware itself with an optimal order quantity? $ round your response to the nearest whole number
e What is the total annual cost, including ordering, holding, and purchasing the silverware? round your response to two decimal places
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