A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5640 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. 25000 O b. 23548 Oc. None is correct O d. 21619 O e. 29813

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5640
boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year.
The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit
price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4
RO. If the discount option is considered, then what is the total annual cost of the best option including
purchasing cost?
O a.
25000
O b. 23548
O c.
None is correct
O d. 21619
O e.
29813
NEXT PAGE
Fin
OUS PAGE
Transcribed Image Text:A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 5640 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then what is the total annual cost of the best option including purchasing cost? O a. 25000 O b. 23548 O c. None is correct O d. 21619 O e. 29813 NEXT PAGE Fin OUS PAGE
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