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Bold Vision, Inc. must purchase toner from a local supplier. The demand rate is 620 EP cartridges per week. The production rate is 1,735 EP cartridges per week, and the setup cost is $100. The value of inventory is $150 per unit, and the holding cost is 15 percent of the inventory value. The company does not wish to carry raw material inventory and therefore only purchases enough toner to satisfy the demand of each individual batch of cartridges. Each toner cartridge requires one pound of toner. The raw material supplier offers Bold Vision a purchase discount of $4.00 per pound if the company orders at least 5,000 pounds at a time. Bold Vision operates 52 weeks per year. Should Bold Vision accept this offer and alter its toner purchase quantity? Bold Vision accept this offer and thereby save $ per year. (Enter your response rounded to the nearest whole number.) should should not

Bold Vision, Inc. must purchase toner from a local supplier. The demand rate is 620 EP cartridges per week. The production rate is 1,735 EP cartridges per week, and the setup cost is $100. The value of inventory is $150 per unit, and the holding cost is 15 percent of the inventory value. The company does not wish to carry raw material inventory and therefore only purchases enough toner to satisfy the demand of each individual batch of cartridges. Each toner cartridge requires one pound of toner. The raw material supplier offers Bold Vision a purchase discount of $4.00 per pound if the company orders at least 5,000 pounds at a time. Bold Vision operates 52 weeks per year. Should Bold Vision accept this offer and alter its toner purchase quantity? Bold Vision accept this offer and thereby save $ per year. (Enter your response rounded to the nearest whole number.) should should not

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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Bold Vision, Inc. must purchase toner from a local supplier. The demand rate is 620 EP cartridges per week. The production rate is 1,735 EP cartridges per week, and the setup cost is $100. The value of inventory is $150 per unit, and the holding cost is 15 percent of the inventory value. The company does not wish to carry raw material inventory and therefore only purchases enough toner to satisfy the demand of each individual batch of cartridges. Each toner cartridge requires one pound of toner. The raw material supplier offers Bold Vision a purchase discount of $4.00 per pound if the company orders at least 5,000 pounds at a time. Bold Vision operates 52 weeks per year. Should Bold Vision accept this offer and alter its toner purchase quantity? Bold Vision V accept this offer and thereby save $ per year. (Enter your response rounded to the nearest whole number.) should should not
Transcribed Image Text:Bold Vision, Inc. must purchase toner from a local supplier. The demand rate is 620 EP cartridges per week. The production rate is 1,735 EP cartridges per week, and the setup cost is $100. The value of inventory is $150 per unit, and the holding cost is 15 percent of the inventory value. The company does not wish to carry raw material inventory and therefore only purchases enough toner to satisfy the demand of each individual batch of cartridges. Each toner cartridge requires one pound of toner. The raw material supplier offers Bold Vision a purchase discount of $4.00 per pound if the company orders at least 5,000 pounds at a time. Bold Vision operates 52 weeks per year. Should Bold Vision accept this offer and alter its toner purchase quantity? Bold Vision V accept this offer and thereby save $ per year. (Enter your response rounded to the nearest whole number.) should should not
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