To boost sales, Pfisher announces a new price structure for disposable surgical packages. Although the price break
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To boost sales, Pfisher announces a new price structure for disposable surgical packages. Although the price break no longer is available at 200 units. Pfisher now offers an even greater discount If larger quantities are purchased. On orders of 1 to 499 packages the price is $50.25 per package. For orders of 500 or more, the price per unit is $47.80. Ordering costs, annual holding costs, and annual demand remain at $64 per order, 20 percent of the per-unit cost, and 490 packages per year, respectively. What is the new lot size?
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The EOQ at the lowest price 4900 remains infeasible and the EOQ at the next lowest pric...View the full answer
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Related Book For 
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
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