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Prescription drugs and health supplements

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Reference no: EM131721740

Drugs Online (DO) in an online retailer of prescription drugs and health supplements. Vitamins represent a significant percentage of its sales. Demand for vitamins is 10,000 bottles per month. DO incurs a fixed order placement, transportation, and receiving cost of $100 each time an order for vitamins is placed with the manufacturer. DO incurs a holding cost of 20 percent. The manufacturer uses the following all unit discount pricing schedule. Evaluate the number of bottles that the Do manager should order in each lot. Order Quantity Unit Price 0-4,999 $3.00 5,000-9,999 $2.96 10,000 or more $2.92

Reference no: EM131721740

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