Ace garden sells 750 trees a month ace purchase the trees, Ask an Expert

Management Studies

Ace garden sells 750 trees a month. Ace purchase the trees at $2 each. Annual holding costs per tree are 30 percent of purchase price, and the reordering costs are $20 per order. Ace has been using a lot size of 1,500 trees. What penalty is the Ace incurring by staying with this lot size?

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Operation Management, Management Studies

Category:- Operation Management
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