What order quantity do you recommend that mac order

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Reference no: EM13523068

Mac-in-the-Box sells computer equipment by mail and telephone order. Mac sells 2,400 flat-bed scanners per year. Ordering cost is $300 and the annual holding cost is 25 percent of the item's price. There are 300 working days in the year and the lead time is 3 days. The scanner manufacturer offers the following price structure to Mac-in-the Box:

Order Quantity

Price per Unit

1 to 199

$520.00

200 to 499

$515.00

500 or more

$512.00

  • Given the above information and basing  your decision on the economics, what order quantity do you recommend that  Mac order from the scanner manufacturer?  Why?
  • How much more expensive is the next  lowest cost option?
  • For the optimal order quantity, what is  the inventory position immediately after an order is placed?

Reference no: EM13523068

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