3 points A mobile home fabricator has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 125 and for $95 in order quantities above 124 units. The order cost is $5, and the annual holding cost is 10% of the unit value. If an incremental quantity discount schedule is in effect. What is the optimum lot size for the refrigerator? O 125 O 1147 O 100 O 1225

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ISBN:9780470458365
Author:Erwin Kreyszig
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3 points
A mobile home fabricator has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 125
and for $95 in order quantities above 124 units. The order cost is $5, and the annual holding cost is 10% of the unit value. If an incremental quantity discount
schedule is in effect.
What is the optimum lot size for the refrigerator?
O 125
O1147
100
O 1225
Transcribed Image Text:3 points A mobile home fabricator has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 125 and for $95 in order quantities above 124 units. The order cost is $5, and the annual holding cost is 10% of the unit value. If an incremental quantity discount schedule is in effect. What is the optimum lot size for the refrigerator? O 125 O1147 100 O 1225
A mobile home fabricator has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 125
and for $95 in order quantities above 124 units. The order cost is $5, and the annual holding cost is 10% of the unit value. If an incremental quantity discoun
schedule is in effect.
What is the total cost for optimum lot size for the refrigerator?
Ⓒ$1'001,500
Transcribed Image Text:A mobile home fabricator has an annual demand of 10,000 units for a small refrigerator. The supplier sells the units for $100 in order quantities below 125 and for $95 in order quantities above 124 units. The order cost is $5, and the annual holding cost is 10% of the unit value. If an incremental quantity discoun schedule is in effect. What is the total cost for optimum lot size for the refrigerator? Ⓒ$1'001,500
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