Assume that the following quantity discount schedule is appropriate: If annual d

Question

Assume that the following quantity discount schedule is appropriate: If annual demand is 9600 units, ordering cost is $32 per order, and annual inventory carrying cost is 20%.

Order Size 0 to 1499 1500 to 2999 3000 or more Discount Unit Cost 0% 7% $2.79 15% $2.55 $3.00 If annual demand is 9600 units, ordering cost is $32 per order, and annual inventory carrying cost is 20%. 1 EOQ with 0% discount is 1000 1011 1049 1098 none of the above d) 2 Best order quantity with 7% discount is 1011 1049 1500 3000 none of the above d) 3 With the best order quantity with 15% discount, the annual holding cost is $300.0 $418.5 $837.0 $765.0 d) none of the above 4 With the best order quantity with 7% discount, the annual ordering cost is $303.9 $204.8 $102.4 $307.2 a) none of the above 5 The lowest total annual cost and the order quantity is $29,407 with 1,000 order quantity $27,407 with 1,500 order quantity $25,347 with 3,000 order quantity $623.3 with 1,500 order quantity none of the above d)

Explanation / Answer

Question 1:

Option (d) is correct choice. That is Order 1098 units.

Question 2:

Option (c) is correct choice. That is 1500.

Question 3:

Option (a) is correct choice. That is $300.0.

Question 4:

Option (e) is correct choice. That is none of the above.

Question 5:

Option (d) is correct choice. That is $623.3 with 1500 order quantity.

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