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

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