A particular raw material is available to a company at three different prices, depending on the size of the order:           Less than 100 pounds $ 20 per pound 100 pounds to 1,999 pounds $ 19 per pound 2,000 pounds or more $ 18 per pound     The cost to place an order is $60. Annual demand is 4,200 units. Holding (or carrying) cost is 30 percent of the material price.   What is the economic order quantity to buy each time, and its total cost? (Round your answers to the nearest whole number.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A particular raw material is available to a company at three different prices, depending on the size of the order:

 

       
Less than 100 pounds $ 20 per pound
100 pounds to 1,999 pounds $ 19 per pound
2,000 pounds or more $ 18 per pound
 

 

The cost to place an order is $60. Annual demand is 4,200 units. Holding (or carrying) cost is 30 percent of the material price.

 

What is the economic order quantity to buy each time, and its total cost? (Round your answers to the nearest whole number.)

 

A particular raw material is available to a company at three different prices, depending on the size of the order:
$ 20
Less than 100 pounds
100 pounds to 1,999 pounds
2,000 pounds or more
per pound
$ 19
per pound
$ 18
per pound
The cost to place an order is $60. Annual demand is 4,200 units. Holding (or carrying) cost is 30 percent of the material price.
What is the economic order quantity to buy each time, and its total cost? (Round your answers to the nearest whole number.)
Economic order quantity
pounds
Total cost
24
Transcribed Image Text:A particular raw material is available to a company at three different prices, depending on the size of the order: $ 20 Less than 100 pounds 100 pounds to 1,999 pounds 2,000 pounds or more per pound $ 19 per pound $ 18 per pound The cost to place an order is $60. Annual demand is 4,200 units. Holding (or carrying) cost is 30 percent of the material price. What is the economic order quantity to buy each time, and its total cost? (Round your answers to the nearest whole number.) Economic order quantity pounds Total cost 24
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