a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity boxes b. Determine the number of orders per year. (Round your answer to 2 decimal places.) Number of order per year

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
Question
answer both parts
A mall-order house uses 15,975 boxes a year. Carrying costs are 42 cents per box a year, and ordering costs are $99. The following
price schedule applies.
Number of Boxes
1,000 to 1,999
2,000 to 4,999
5,000 to 9,999
10,000 or more
Click here for the Excel Data File
Price per Box
$1.45
1.35
1.25
1.20
a. Determine the optimal order quantity. (Round your answer to the nearest whole number.)
Optimal order quantity
Number of order
boxes
b. Determine the number of orders per year. (Round your answer to 2 decimal places.)
per year
Transcribed Image Text:A mall-order house uses 15,975 boxes a year. Carrying costs are 42 cents per box a year, and ordering costs are $99. The following price schedule applies. Number of Boxes 1,000 to 1,999 2,000 to 4,999 5,000 to 9,999 10,000 or more Click here for the Excel Data File Price per Box $1.45 1.35 1.25 1.20 a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity Number of order boxes b. Determine the number of orders per year. (Round your answer to 2 decimal places.) per year
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