Question Details
A manufacturer of exercise equipment purchases the pulley
section of the equipment from a supplier who lists these prices:
less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to
5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering costs
are $48, annual carrying costs per unit are 40 percent of purchase
cost, and annual usage is 4,920 pulleys.
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Determine an order quantity that will minimize total cost.
(Round "Q" values to the nearest whole number and all other
calculations to 2 decimal places.)
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This question was answered on: Dec 08, 2020
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STATUSAnswered
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DATE ANSWEREDDec 08, 2020
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