Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: D S 1 Purchase price Discount price Quantity needed to qualify for the discount = 5,900 disks. What is the EOQ? 36,100 disks $25 22% $0.87 $0.81 EOQ= units (round your response to the nearest whole number). ncorrect
Cesar Rego Computers, a Mississippi chain of computer hardware and software retail outlets, supplies both educational and commercial customers with memory and storage devices. It currently faces the following ordering decision relating to purchases of disks: D S 1 Purchase price Discount price Quantity needed to qualify for the discount = 5,900 disks. What is the EOQ? 36,100 disks $25 22% $0.87 $0.81 EOQ= units (round your response to the nearest whole number). ncorrect
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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![**Cesar Rego Computers: An Inventory Decision Analysis**
Cesar Rego Computers, a Mississippi-based chain specializing in computer hardware and software retail, supplies memory and storage devices to both educational and commercial customers. The company is currently evaluating an ordering decision for disk purchases. Here are the details:
- **Annual Demand (D):** 36,100 disks
- **Order Cost (S):** $25 per order
- **Carrying Cost Rate (I):** 22% of purchase price
- **Purchase Price per Disk:** $0.87
- **Discount Price per Disk:** $0.81
**Discount Qualification:**
To receive the discounted price, a purchase of 5,900 disks is required.
**Economic Order Quantity (EOQ) Calculation:**
Calculate the EOQ based on the above details. The EOQ is to be determined and rounded to the nearest whole number.
\[ \text{EOQ} = \text{units (round your response to the nearest whole number)} \]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a44212c-b8b1-4ff0-bde6-3e570916b708%2Fe8e03e16-1e1f-4f19-a17f-47653690b953%2F32ikqxn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Cesar Rego Computers: An Inventory Decision Analysis**
Cesar Rego Computers, a Mississippi-based chain specializing in computer hardware and software retail, supplies memory and storage devices to both educational and commercial customers. The company is currently evaluating an ordering decision for disk purchases. Here are the details:
- **Annual Demand (D):** 36,100 disks
- **Order Cost (S):** $25 per order
- **Carrying Cost Rate (I):** 22% of purchase price
- **Purchase Price per Disk:** $0.87
- **Discount Price per Disk:** $0.81
**Discount Qualification:**
To receive the discounted price, a purchase of 5,900 disks is required.
**Economic Order Quantity (EOQ) Calculation:**
Calculate the EOQ based on the above details. The EOQ is to be determined and rounded to the nearest whole number.
\[ \text{EOQ} = \text{units (round your response to the nearest whole number)} \]
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