A pencil supplier has just introduced quantity discounts. The price schedule follows.Order Quantity Price per Unit$3.50$3.00$2.500-499500-9991000 and moreGary's store's annual demand remains at 2000 units and ordering cost at $20 per order. If the annualholding cost rate is 30 percent, what order quantity should Gary select to minimize all costs? What wouldbe the monthly total cost?

EOQ = sqrt(2*D*S/H) D = demand S = ordering/setup cost H = holding cost Annual holding cost = EOQ/2…

Answered: A pencil supplier has just introduced…

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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Joe Henry's machine shop uses 2,530 brackets during the course of a year. These brackets are purchased from a supplier 90 miles away. The following information is known about the brackets: Annual demand 2,530 Holding cost per bracket per year $1.65 Order cost per order $18.25 Lead time 2 days Working days per year 250 Part 2 a) What is the EOQ? enter your response here units (round your response to two decimal places). Part 3 b) What is the average inventory if the EOQ is used? enter your response here units (round your response to two decimal places). What would be the annual inventory holding cost? $enter your response here (round your response to two decimal places). Part 4 c) Given the EOQ, how many orders will be made annually? enter your response here orders (round your response to two decimal places). What would be the annual order cost? $enter your response here (round…
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