Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 480 units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per unit 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 what is the total annual cost of the best option including purchasing cost

Practical Management Science
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Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 480 units per month. It
costs OR 10 to make and receive an order and holding cost is OR 3.5 per unit 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 what is the total annual cost of the best option including purchasing cost
Select one:
O
a. 23548
O b.29813
O c. 21619
O d. 24031
Oe. None is correct
Next page
O # e n
search
Transcribed Image Text:Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 480 units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per unit 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 what is the total annual cost of the best option including purchasing cost Select one: O a. 23548 O b.29813 O c. 21619 O d. 24031 Oe. None is correct Next page O # e n search
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