Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 700 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 best order quantity that minimizes the total annual inventory cost is Select one: O a. 199 O b. None is correct Oc. 371 O d. 200 e. 600
Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 700 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 best order quantity that minimizes the total annual inventory cost is Select one: O a. 199 O b. None is correct Oc. 371 O d. 200 e. 600
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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Transcribed Image Text:Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 700
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 best order
quantity that minimizes the total annual inventory cost is
Select one:
O a. 199
O b. None is correct
O c. 371
O d. 200
e. 600
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