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2:33 7 Expert Q&A .5GE Done Please fill in the blank. ***NOTE: The lowest price is realized at 101 units instead of 100 units as mentioned in the question. bags at a time. A local nursery, Greens, uses 1,600 bags of plant food annually. Greens works fifty-two weeks per year. It costs $12 to place an order for plant food. Lead time is one week. Rapid Grower, the supplier of plant food for Greens, has offered the following quantity discounts. If the nursery places orders of 60 bags or less, the cost per bag is $24. For orders greater than 60 bags but less than 100 bags, the cost per bag is $22. For orders of 100 bags or more, the cost is $21 per bag. Greens estimates its holding cost to be 25 percent of the unit price. Determine the most cost-effective ordering policy for Greens. Optimal ordering policy is to order

2:33 7 Expert Q&A .5GE Done Please fill in the blank. ***NOTE: The lowest price is realized at 101 units instead of 100 units as mentioned in the question. bags at a time. A local nursery, Greens, uses 1,600 bags of plant food annually. Greens works fifty-two weeks per year. It costs $12 to place an order for plant food. Lead time is one week. Rapid Grower, the supplier of plant food for Greens, has offered the following quantity discounts. If the nursery places orders of 60 bags or less, the cost per bag is $24. For orders greater than 60 bags but less than 100 bags, the cost per bag is $22. For orders of 100 bags or more, the cost is $21 per bag. Greens estimates its holding cost to be 25 percent of the unit price. Determine the most cost-effective ordering policy for Greens. Optimal ordering policy is to order

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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**Expert Q&A** Please fill in the blank. ***NOTE: The lowest price is realized at 101 units instead of 100 units as mentioned in the question.*** A local nursery, Greens, uses 1,600 bags of plant food annually. Greens works fifty-two weeks per year. It costs $12 to place an order for plant food. Lead time is one week. Rapid Grower, the supplier of plant food for Greens, has offered the following quantity discounts. If the nursery places orders of 60 bags or less, the cost per bag is $24. For orders greater than 60 bags but less than 100 bags, the cost per bag is $22. For orders of 100 bags or more, the cost is $21 per bag. Greens estimates its holding cost to be 25 percent of the unit price. Determine the most cost-effective ordering policy for Greens. Optimal ordering policy is to order _______ bags at a time.
Transcribed Image Text:**Expert Q&A** Please fill in the blank. ***NOTE: The lowest price is realized at 101 units instead of 100 units as mentioned in the question.*** A local nursery, Greens, uses 1,600 bags of plant food annually. Greens works fifty-two weeks per year. It costs $12 to place an order for plant food. Lead time is one week. Rapid Grower, the supplier of plant food for Greens, has offered the following quantity discounts. If the nursery places orders of 60 bags or less, the cost per bag is $24. For orders greater than 60 bags but less than 100 bags, the cost per bag is $22. For orders of 100 bags or more, the cost is $21 per bag. Greens estimates its holding cost to be 25 percent of the unit price. Determine the most cost-effective ordering policy for Greens. Optimal ordering policy is to order _______ bags at a time.
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