C. (U poins) LON LNCKY. Association curenly faces thefollowing ordering decison retating to purchases of very important item: weekly demand is 400 units ordering cost is $20 holding cost is $4.00 purchasing price is $34.00 Discount price when purchase more than 460 is $32.00. How many items are you going to purchase and at what price?
Expert Answer
Purchase quantity Q = SQRT(2*D*S/H)
Q = SQRT (2*400*52*20/4) = 456
Price of the item = 34 $ (as the quantity < 460)