liston 1on 2tion 3KThe catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for500 people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.> For a small order (2,000 pieces or less) her vendor quotes a price of $1.80/piece.>If she orders 2,001 to 5,000 pieces, the price drops to $1.60/piece.>5,001 to 10,000 pieces brings the price to $1.40/piece, and> 10,001 and above reduces the price to $1.25/piece.Lisa's order costs are $195 per order, her annual holding costs are 5%, and the annual demand is 44,100 pieces. For the best option (the best option is the price level that results in an EOQ withinthe acceptable range):a) What is the optimum ordering quantity? 2180 units (round your response to the nearest whole number).

Ordering Cost (S)=$195 Holding Cost per unit (H)= 5% of price per unit Annual Demand (D)=44,100…

Answered: list 1 72 n 3 K The catering manager of…

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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Define each of the following terms: c. Economic Ordering Quantity (EOQ); EOQ model; EOQ range
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