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A manager just received a new price list from a supplier. It will now cost $1.00 a box for order quantities of 801 or more boxes, $1.10 a box for 200 to 800 boxes, and $1.20 a box for smaller quantities. Ordering cost is $82 per order and carrying costs are $10 per box a year. The firm uses 3,650 boxes a year. The manager has suggested a "round number" order size of 800 boxes. The manager's rationale is that with a U-shaped cost curve that is fairly flat at its minimum, the difference in total annual cost between 800 and 801 units would be small anyway. What order size would you recommend? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)
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To complete this scenario, use the Confidence Interval Calculator and the Area Gas Prices %u2013 Random Sample documents, provided in the Resources. The Minneapolis Star Tribune
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How operations evolved from industrial revolution to internet revolution?
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