A small mail-order company uses 19,500 boxes a year. Holding cost rate is 19 percent of unit cost per year, and ordering cost is $27 per order. The following quantity discounts are available. Number of Boxes Price per Box 1,000 to 1,999 $1.20 2,000 to 4.999 1.15 5,000 to 9,999 1. 0 10,000 or more 1.05 a. Determine the optimal order quantity. Optimal order quantity 2,297 Numeric Response 1. Edit Unavailable. 2, 297 incorrect.boxes b. Determine the number of orders per year. (Round the final answer to 1 decimal place.) No. of orders per year 8.4 Numeric Response 2. Edit Unavailable. 8.4 incorrect.

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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A small mail-order company uses 19,500 boxes a year.
Holding cost rate is 19 percent of unit cost per year,
and ordering cost is $27 per order. The following
quantity discounts are available. Number of Boxes Price
per Box 1,000 to 1,999 $1.20 2,000 to 4.999 1.15 5,000
to 9,999 1.10 10,000 or more 1.05 a. Determine the
optimal order quantity. Optimal order quantity 2, 297
Numeric Response 1. Edit Unavailable. 2,297
incorrect.boxes b. Determine the number of orders per
year. (Round the final answer to 1 decimal place.) No.
of orders per year 8.4 Numeric Response 2. Edit
Unavailable. 8.4 incorrect.
Transcribed Image Text:A small mail-order company uses 19,500 boxes a year. Holding cost rate is 19 percent of unit cost per year, and ordering cost is $27 per order. The following quantity discounts are available. Number of Boxes Price per Box 1,000 to 1,999 $1.20 2,000 to 4.999 1.15 5,000 to 9,999 1.10 10,000 or more 1.05 a. Determine the optimal order quantity. Optimal order quantity 2, 297 Numeric Response 1. Edit Unavailable. 2,297 incorrect.boxes b. Determine the number of orders per year. (Round the final answer to 1 decimal place.) No. of orders per year 8.4 Numeric Response 2. Edit Unavailable. 8.4 incorrect.
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