Question 29Kona's Manufacturing purchases 7000 boxes of organic dog treats per year. Boxes of the treats are priced as follows: 1 to 999$1.30 dollars each, 1,000-1,499: $0.80 cents each, and 1,500 or more: $0.65 cents each. It costs $25 to prepare an order andreceive it and carrying costs are 25 percent of unit cost per unit on an annual basis. Determine the feasible order quantity (youdo not need to determine the total cost for this problem).O 1038O 1686O1323O 10751468

Given- Annual Demand (D) = 7000 boxesOrdering Cost (S) = $25Holding Cost (H) = 25% of unit cost

Answered: Kona's Manufacturing purchases 7000…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Company S offers the following discount schedule for its sheets. Company K orders sheet from Company S. Company K has an ordering cost of $45. The carrying cost is 20%, and the annual demand is 100 sheets. Order Unit Cost 9 sheets or less $18.00 10 to 50 sheets $17.50 More than 50 sheets $17.25 The total cost of ordering more than 50 sheets is
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