1. Annual Demand is 450 units. The cost to place an order is $80 and holding cost is 25% per year of the cost of the item. The supplier has just submitted the following cost schedule to you. Quantity...

1. Annual Demand is 450 units. The cost to place an order is $80 and holding cost is 25% per year<br>of the cost of the item. The supplier has just submitted the following cost schedule to you.<br>Quantity<br>Price<br>EOQ<br>Feasible?<br>1 to 50<br>$60<br>51-100<br>$54<br>Over 100<br>$51<br>a) Calculate the EOQ for each Price. Determine which are feasible. Fill in above. (<br>b) Is the EOQ for the lowest unit price feasible? If not, compare total cost at all break quantities<br>larger than the feasible EOQ.<br>c) What decision would you make?<br>

Extracted text: 1. Annual Demand is 450 units. The cost to place an order is $80 and holding cost is 25% per year of the cost of the item. The supplier has just submitted the following cost schedule to you. Quantity Price EOQ Feasible? 1 to 50 $60 51-100 $54 Over 100 $51 a) Calculate the EOQ for each Price. Determine which are feasible. Fill in above. ( b) Is the EOQ for the lowest unit price feasible? If not, compare total cost at all break quantities larger than the feasible EOQ. c) What decision would you make?

Jun 11, 2022

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1. Annual Demand is 450 units. The cost to place an order is $80 and holding cost is 25% per year of the cost of the item. The supplier has just submitted the following cost schedule to you. Quantity...

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