Meena Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 19% of the unit cost, and the ordering cost is $25 per order. If Purushottama Meena, the owner, orders in quantities of 300 or more, he can get a 4% discount on the cost of the detectors. Should Meena take the quantity discount? Part 2 What is the EOQ without the discount? EOQ = enter your response here units (round your response to one decimal place). Part 3 Since the total cost with the discount is ▼ greater than less than the total cost without the discount, Meena ▼ should should not order 300 units at a time in order to qualify for the discount.
Meena Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 19% of the unit cost, and the ordering cost is $25 per order. If Purushottama Meena, the owner, orders in quantities of 300 or more, he can get a 4% discount on the cost of the detectors. Should Meena take the quantity discount? Part 2 What is the EOQ without the discount? EOQ = enter your response here units (round your response to one decimal place). Part 3 Since the total cost with the discount is ▼ greater than less than the total cost without the discount, Meena ▼ should should not order 300 units at a time in order to qualify for the discount.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Question
Meena Distributors has an annual demand for an airport metal detector of
1,420
units. The cost of a typical detector to Meena is
$400.
Carrying cost is estimated to be
19%
of the unit cost, and the ordering cost is
$25
per order. If Purushottama
Meena,
the owner, orders in quantities of
300
or more, he can get a
4%
discount on the cost of the detectors. Should Meena take the quantity discount?Part 2
What is the EOQ without the discount?
EOQ =
enter your response here
units (round your response to one decimal place).Part 3
Since the total cost with the discount is
the total cost without the discount, Meena
order 300 units at a time in order to qualify for the discount.
▼
greater than
less than
▼
should
should not
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