The 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 for 500​ 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 ​$205 per​ order, her annual holding costs are 5​%, and the annual demand is 45,100 pieces. For the best option​ (the best option is the price level that results in an EOQ within the acceptable​ range): Part 2 ​a) What is the optimum ordering​ quantity? enter your response here units ​(round your response to the nearest whole​ number). Part 3 ​b) What is the annual holding​ cost? ​$enter your response here ​(round your response to two decimal​ places). Part 4 ​c) What is the annual ordering​ cost? ​$enter your response here ​(round your response to two decimal​ places). Part 5 ​d) What are the annual costs of the silverware itself with an optimal order​ quantity? ​$enter your response here ​(round your response to the nearest whole​ number). Part 6 ​e) What is the total annual​ cost, including​ ordering, holding, and purchasing the​ silverware? ​$enter your response here ​(round your response to two decimal​ places).

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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The 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 for 500​ 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
​$205
per​ order, her annual holding costs are
5​%,
and the annual demand is
45,100
pieces. For the best option​ (the best option is the price level that results in an EOQ within the acceptable​ range):
Part 2
​a) What is the optimum ordering​ quantity?
enter your response here
units ​(round your response to the nearest whole​ number).
Part 3
​b) What is the annual holding​ cost?
​$enter your response here
​(round your response to two decimal​ places).
Part 4
​c) What is the annual ordering​ cost?
​$enter your response here
​(round your response to two decimal​ places).
Part 5
​d) What are the annual costs of the silverware itself with an optimal order​ quantity?
​$enter your response here
​(round your response to the nearest whole​ number).
Part 6
​e) What is the total annual​ cost, including​ ordering, holding, and purchasing the​ silverware?
​$enter your response here
​(round your response to two decimal​ places).
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