Question

The regular price of a component is $1.5. On orders of more than 1000 units, the price is discounted to $1.2. On orders of over 2000 units, the discount price is $1.0. At present, inventory carrying cost is 5% per unit price per year, and its ordering cost is $200. Annual demand is 4000 components. What is the adjusted order quantity for the unit price of $1.5? (Note: enter your answer number with no decimal).

          The regular price of a component is $1.5. On orders of more than 1000 units, the price is discounted to $1.2. On orders of over 2000 units, the discount price is $1.0. At present, inventory carrying cost is 5% per unit price per year, and its ordering cost is $200. Annual demand is 4000 components.
What is the adjusted order quantity for the unit price of $1.5? (Note: enter your answer number with no decimal).

The regular price of a component is 1.5. On orders of more than 1000 units, the price is discounted to1.2. On orders of over 2000 units, the discount price is 1.0. At present, inventory carrying cost is 5% per unit price per year, and its ordering cost is $200. Annual demand is 4000 components.
What is the adjusted order quantity for the unit price of1.5? (Note: enter your answer number with no decimal).

Added by Karen F.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

Instant Answer

Solved by Expert Daniel Carr

08/09/2024

Step 1

5 - Inventory carrying cost ($H$) = 5% of unit price per year = $0.05 \times 1.5 = \$0.075$ - Ordering cost ($S$) = \$200 - Annual demand ($D$) = 4000 units Show more…

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