Larger quantity purchases, Operation Management

A vendor's gives discounts to entice larger quantity purchases.  The price breaks are as follows:

Order Size    Discount    Unit Price    
0 - 40              0%           $30
50 - 99            5%           $28.50
100 or more    10%          $27

If your store's yearly demand is 150 units, ordering cost is $20, and yearly inventory carrying cost is 25 percent of the unit prices, what order quantity policy should you follow?

Posted Date: 3/25/2013 4:03:14 AM | Location : United States







Related Discussions:- Larger quantity purchases, Assignment Help, Ask Question on Larger quantity purchases, Get Answer, Expert's Help, Larger quantity purchases Discussions

Write discussion on Larger quantity purchases
Your posts are moderated
Related Questions
Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. Th

find the optimal location for kilroy"s distribution center in this expanded version of the problem

You know that our average weekly sales are $2,500 and the flow time is half day. Surely with this information, you should have no problem maintaining an inventory level of $400 to

What do you think Joe Thomas should do about this matter?

Describe a recruitment process that would provide a pool of pre-qualified candidates for the seven open trainer positions.

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Define Critical Path. Critical Path: Computation of Earliest and Latest Values of the events of the specified network is as follows:-  Event              EOT

Assess the strategy of Wal-Mart in China where the company has recognized unions in all 62 stores, to its strategy in the U.S., which is to combat any type of union representation.

Tell me what the organizational structure of your (Ideal) work location would look like, using the terminology of this chapter 17. Use terms like mechanistic, organic, open, closed

Of all the advantages of franchising, which one would appeal to you as an entrepreneur? Which disadvantages would you dislike the most and why?