Demand for fasteners at turan inc is 240000 boxes per year, Ask an Expert

Management Studies

Demand for fasteners at Turan Inc. is 240,000 boxes per year with constant demand rate. Holding cost at Turan is 20 percent per box per year. Each order incurs a fixed cost of $400. The supplier offers an all unit discount pricing scheme with a price of $5 per box for orders under 30,000 and a price of $4.90 for all orders of 30,000 or more. How many boxes should Turan order per replenishment?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93116554

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