Course Solutions Uncategorized (Answered) : Q2 6 Marks Clo 2 Amna Sells Beauty Supplies Annual Demand Particular Skin Spackle 15 000 U Q34259448

(Answered) : Q2 6 Marks Clo 2 Amna Sells Beauty Supplies Annual Demand Particular Skin Spackle 15 000 U Q34259448

Q.2 (6 marks) (CLO 2) Amna sells beauty supplies. Her annual demand for a particular skin spackle is 15,000 units. The cost of placing an order is $45, while the holding cost per unit per year is 12 percent of the cost. This item currently costs $15 if the order quantity is less than 1500. For orders of 1501 units up to 10,000 units the cost falls to $12 and for orders of 10,001 or greater, the cost falls to $11 (a) To minimize total cost, how many units should Amna order each time she places an order? What is the minimum total cost? (b)Q.2

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