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Chapter 14.S, Problem 2P

a)

Summary Introduction

To calculate: The number of cases to order.

b)

Summary Introduction

To explain: If you would settle for a further discount and explain the quantities that would be negotiated.

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A company that manufactures cars would use about 50,000 steering wheels per year. Such steering wheel is being ordered from a supplier that would cost the company P1,250.00 per order. It would also costs 40% of the steering wheel's cost to keep it annually. The steering wheel costs P7,500.00 each. How much is the total inventory cost?
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Chapter 14 Solutions

OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)

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