Operations and Supply Chain Management
A small computer firm orders monitors for sale. The annual demand is 1300 per year. The holding cost is 10 percent of the value of the monitors on hand. Each time they order it cost the company 150 dollars. Using the price break table below please determine what the optimal number to order would be for this company. Annual Demand 1300 order cost 150 percent holding cost 0.1 price break discount table number price 0 to 100 $100.00 101-200 $99.75 201-250 $99.50 251-300 $99.35 301-350 $99.25 351 and up $99.20
A small computer firm orders monitors for sale. The annual demand is 1300 per year. The holding cost is 10 percent of the value of the monitors on hand. Each time they order it cost the company 150 dollars. Using the price break table below please determine what the optimal number to order would be for this company. Annual Demand 1300 order cost 150 percent holding cost 0.1 price break discount table number price 0 to 100 $100.00 101-200 $99.75 201-250 $99.50 251-300 $99.35 301-350 $99.25 351 and up $99.20
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