Question

Exercise 16.24 Tamarisk Co. has the following quantity discount policy with its supplier. \begin{tabular}{|l|l|} \hline Quantity & Price per Unit \\ \hline 1-499 units & $16.00 \\ 500-999 units & $15.75 \\ 1,000-1,999 units & $15.20 \\ 2,000 units + & $14.25 \\ \hline \end{tabular} The economic order quantity is 760 units and the annual usage is 24,942 units. The ordering cost (K) is $22 per order and the carrying cost of inventory (H) is $1.90 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) The most cost effective order quantity is Total Cost

          Exercise 16.24
Tamarisk Co. has the following quantity discount policy with its supplier.
\begin{tabular}{|l|l|}
\hline
Quantity & Price per Unit \\
\hline
1-499 units & $16.00 \\
500-999 units & $15.75 \\
1,000-1,999 units & $15.20 \\
2,000 units + & $14.25 \\
\hline
\end{tabular}
The economic order quantity is 760 units and the annual usage is 24,942 units. The ordering cost (K) is $22 per order and the carrying cost of inventory (H) is $1.90 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.)
The most cost effective order quantity is 
Total Cost

Exercise 16.24
Tamarisk Co. has the following quantity discount policy with its supplier.

Quantity Price per Unit

1-499 units 16.00

500-999 units15.75

1,000-1,999 units 15.20

2,000 units +14.25

The economic order quantity is 760 units and the annual usage is 24,942 units. The ordering cost (K) is 22 per order and the carrying cost of inventory (H) is1.90 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.)
The most cost effective order quantity is
Total Cost

Added by Laura H.

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