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b A manufacturer of Golf Cart purchases the seat portion of the stroller from a supplier who lists these prices: less 1,000 seats, SR 10 each; 1000 to 3999, 7 each; 4000 to 5999, SR 5 each; and 6000 or more SR 4 each. Ordering costs are SR 50 and the annual usage is 6000 seats. Determine an order quantity which will minimize total cost under the following situation: If the annual carrying cost is 20 percent of the purchase price?! a. If the annual carrying cost is SR 3 per seat?

b A manufacturer of Golf Cart purchases the seat portion of the stroller from a supplier who lists these prices: less 1,000 seats, SR 10 each; 1000 to 3999, 7 each; 4000 to 5999, SR 5 each; and 6000 or more SR 4 each. Ordering costs are SR 50 and the annual usage is 6000 seats. Determine an order quantity which will minimize total cost under the following situation: If the annual carrying cost is 20 percent of the purchase price?! a. If the annual carrying cost is SR 3 per seat?

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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b A manufacturer of Golf Cart purchases the seat portion of the stroller from a supplier who lists these prices : less 1,000 seats, SR 10 each; 1000 to 3999, 7 each: 4000 to 5999, SR 5 each; and 6000 or more SR 4 each. Ordering costs are SR 50 and the annual usage is 6000 seats. Determine an order quantity which will minimize total cost under the following situation: If the annual carrying cost is 20 percent of the purchase price? a. If the annual carrying cost is SR 3 per seat? Submet as O NU
Transcribed Image Text:b A manufacturer of Golf Cart purchases the seat portion of the stroller from a supplier who lists these prices : less 1,000 seats, SR 10 each; 1000 to 3999, 7 each: 4000 to 5999, SR 5 each; and 6000 or more SR 4 each. Ordering costs are SR 50 and the annual usage is 6000 seats. Determine an order quantity which will minimize total cost under the following situation: If the annual carrying cost is 20 percent of the purchase price? a. If the annual carrying cost is SR 3 per seat? Submet as O NU
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