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Operations Management
asis. Determine the optimal order quantity and the total annual cost.

asis. Determine the optimal order quantity and the total annual cost.

Practical Management Science
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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- Maintenance department in an oil company uses 4000 small bolts a year. Bolts are priced as follows: (1$-100 cents) 1 to 499 90 cents each 500 to 999 85 cents each 1000 and more 80 cents each It costs approximately $30 to prepare an order and receive it. Carrying costs are 40% of purchase price per unit on an annual basis. Determine the optimal order quantity and the total annual cost.
Transcribed Image Text:- Maintenance department in an oil company uses 4000 small bolts a year. Bolts are priced as follows: (1$-100 cents) 1 to 499 90 cents each 500 to 999 85 cents each 1000 and more 80 cents each It costs approximately $30 to prepare an order and receive it. Carrying costs are 40% of purchase price per unit on an annual basis. Determine the optimal order quantity and the total annual cost.
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