Al Fardan Company is specialized in mangoes distribution in the city of Muscat. Sales are 500 boxes (unit) per month (four weeks). 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 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 the best decision that minimizes the total annual inventory cost is Select one: a. 200 units, Total cost =27,240 b. 500 units, Total cost = 24,995 c. 450 units, Total cost = 23,500 d. 185 units, Total cost = 30,649

Al Fardan Company is specialized in mangoes distribution in the city of Muscat. Sales are 500 boxes (unit) per month (four weeks). 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 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 the best decision that minimizes the total annual inventory cost is Select one: a. 200 units, Total cost =27,240 b. 500 units, Total cost = 24,995 c. 450 units, Total cost = 23,500 d. 185 units, Total cost = 30,649

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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