What order quantity minimizes Millennium's annual ordering and holding costs? If Millennium chooses to order 350 cases each time, what is the sum of their annual ordering and holding costs? (Round your answer to 2 decimal places.) If Millennium chooses to order 125 cases each time, what is the sum of the ordering and holding costs incurred by each case sold? 257 $ 7,413 $4.02 X cases per case

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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Answer is not complete.
Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noire
which is shipped directly from France. Weekly demand is for 50 cases. Millennium purchases each case for
$110, there is a $350 fixed cost for each order (independent of the quantity ordered) and their annual holding
cost is 25 percent.
a.
b.
C.
d.
e.
What order quantity minimizes Millennium's annual ordering and holding
costs?
If Millennium chooses to order 350 cases each time, what is the sum of
their annual ordering and holding costs?
(Round your answer to 2 decimal places.)
If Millennium chooses to order 125 cases each time, what is the sum of the
ordering and holding costs incurred by each case sold?
If Millennium is restricted to order in multiples of 50 cases (e.g., 50, 100,
150, etc.) how many cases should they order to minimize their annual
ordering and holding costs?
Millennium is offered a 5.00% discount if they purchase at least 1,000
cases. If they decide to take advantage of this discount, what is the sum of
their annual ordering and holding costs?
257
$ 7,413
4.02 X
cases
per
case
cases
Transcribed Image Text:Answer is not complete. Millennium Liquors is a wholesaler of sparkling wines. Their most popular product is the French Bete Noire which is shipped directly from France. Weekly demand is for 50 cases. Millennium purchases each case for $110, there is a $350 fixed cost for each order (independent of the quantity ordered) and their annual holding cost is 25 percent. a. b. C. d. e. What order quantity minimizes Millennium's annual ordering and holding costs? If Millennium chooses to order 350 cases each time, what is the sum of their annual ordering and holding costs? (Round your answer to 2 decimal places.) If Millennium chooses to order 125 cases each time, what is the sum of the ordering and holding costs incurred by each case sold? If Millennium is restricted to order in multiples of 50 cases (e.g., 50, 100, 150, etc.) how many cases should they order to minimize their annual ordering and holding costs? Millennium is offered a 5.00% discount if they purchase at least 1,000 cases. If they decide to take advantage of this discount, what is the sum of their annual ordering and holding costs? 257 $ 7,413 4.02 X cases per case cases
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