Economic Order Quantity (Operations Management)

Oct 26th, 2015
Business Finance
Price: $5 USD

Question description

Annual Demand = 600 units, Ordering Cost = $20  and Holding Cost = $1.5

order quantity be to minimize total annual cost = 126.49

If the company's current order size is 40 units per order, what is the cost saving from the quantity discount (126.49) ?

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(Top Tutor) ipesuni
School: UC Berkeley

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