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use one-time sale model Johnson's Juice sells bottles of Keep Me Awake During Class fruit juice to college students. Annual demand is 86,000 bottles. The
use one-time sale model
Johnson's Juice sells bottles of "Keep Me Awake During Class" fruit juice to college students. Annual demand is 86,000 bottles. The company uses an annual holding cost percentage of 16.5%, it its setup cost is $43 per order. The current price per bottle from the suppller is $0.7, and Johnson's Juice resells it to customers for $2.00 each. However, the supplier has notified Johnson's Juice that starting next week, the purchase price will rise to $1.18 due to tariffs imposed by the government. Johnson's inventory of bottles is about to be depleted. (Assume that the bottles are so full of chemicals that the drinks never expire) a. Which inventory model fits the best to this problem? A. One-time sale model B. All-units quantity discounts model C. Lumpy demand model D. Incremental quantity discounts model b. Johnsoris Juice should purchase bottles in the next order (round your response to the nearest intoger) Step by Step Solution
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