Course Solutions Uncategorized (Answered) : Question 1 Yet Answred Marked 2500 P Flag Question Manager Recelved New Price List Boxes S Q33503598

(Answered) : Question 1 Yet Answred Marked 2500 P Flag Question Manager Recelved New Price List Boxes S Q33503598

June 27, 2024June 27, 2024| adminadmin| 0 Comment| 6:55 pm
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Question 1 Not yet answred Marked out of 25.00 P Flag question A manager just recelved a new price list for boxes from a supplier. It will now cost $1.00 a box for order quantities of 801 or more, SL.10 a box for 200 to 800, and $1.20 a box for smaller quantities. Ordering cost is $40 per order and holding cost rate is 40 percent of unit cost per year. The company uses 3,600 boxes a year. The manager has suggested a round number order quantity of 800 boxes. The managers rationale is that total annual inventory cost is U-shaped and fairly flat at its minimum. Therefore, the difference in total annual cost between 800 and 801 units would be small anyway. What order quantity would you recommend? (Round your answer to the nearest whole number.) AnswerQuestion

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