Demand for specific a spare part is (20090) boxes per month. The holding cost is 25% per year. Each order incurs a fixed cost of $1,000. The supplier wants to offer a quantity discount pricing scheme with a price of $5 per box for the first 30,000, a price of $4.90 per unit for the quantity between 30,000 and 50,000, and $4.70 per unit for the quantity above 50,000 units. a. Analyze all unit quantity discount systems for this case. b. Analyze the marginal unit quantity discount system for this case. c. Compare two systems and interpret.
Demand for specific a spare part is (20090) boxes per month. The holding cost is 25% per year. Each order incurs a fixed cost of $1,000. The supplier wants to offer a quantity discount pricing scheme with a price of $5 per box for the first 30,000, a price of $4.90 per unit for the quantity between 30,000 and 50,000, and $4.70 per unit for the quantity above 50,000 units. a. Analyze all unit quantity discount systems for this case. b. Analyze the marginal unit quantity discount system for this case. c. Compare two systems and interpret.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Demand for specific a spare part is (20090) boxes per month. The holding cost is 25% per year. Each order incurs a
fixed cost of $1,000. The supplier wants to offer a quantity discount pricing scheme with a price of $5 per box for the
first 30,000, a price of $4.90 per unit for the quantity between 30,000 and 50,000, and $4.70 per unit for the quantity
above 50,000 units. a. Analyze all unit quantity discount systems for this case. b. Analyze the marginal unit quantity
discount system for this case. c. Compare two systems and interpret.
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