Please answer within 30 minutes. Extend the simple EOQ model to Quantity-Price Discounts. Show your work. The values of the parameters are: D=12000. S-269. C-$38.00, I-0.23, H=1*C-8.74W=240. m=7. y=D/W. r= ym. T=Q/y. or T = EOQ/y.(1) What is the Economic Order Quantity (Optimal Order Quantity)?EOQ=2DSH=859.462*12000*2698.74

The quantity discount model is a strategy that reduces prices and offers discounts to customers.…

Answered: Extend the simple EOQ model to…

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Operations Management

Extend the simple EOQ model to Quantity-Price Discounts. Show your work.

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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A: THE ANSWER IS AS BELOW:

Question

Please answer within 30 minutes.

Extend the simple EOQ model to Quantity-Price Discounts. Show your work.

The values of the parameters are: D=12000. S-269. C-$38.00, I-0.23, H=1*C-8.74
W=240. m=7. y=D/W. r= ym. T=Q/y. or T = EOQ/y.
(1) What is the Economic Order Quantity (Optimal Order Quantity)?
EOQ=
2DS
H
=859.46
2*12000*269
8.74

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