To evaluate the credible commitment about battery life and the durability of other related systems of C.

Question

SBC company has demand for 1,000 pumps each year. The cost of a pump is $50, it costs $40 to place an order with their supplier, and the cost of holding the item in inventory for a year is 25% of the unit cost. The supplier just Informed the SBC that. If pumps are ordered in quantities of 200 units or more that they will receive a 3% discount, How many pumps should SBC order from their supplier each time they place an order to minimize its expected iotal annual cost for this Item?

Answer 1

Question

Chapter 14, Problem 1.2CE

To determine

To evaluate the credible commitment about battery life and the durability of other related systems of C.

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