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Operations Research inventory , Mathematics
A firm buys a product using the price schedule given in the table:
The company estimate holding costs at 10% of the purchase price per year and ordering costs at $40 per order . the firm''s annual demand is 460 units to optimize costs:
1determine how often the firm should order
2determine the size of each order and
3at what price should the firm order
Price per unit Order size
$20.00 099 units
$19.50 100199 units
$19.00 200299 units
$18.75 300 or more units
Posted Date: 4/19/2012 7:11:49 AM  Location : United States
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