Demand for phones at amazon is 5000 per month the holding, Ask an Expert

Management Studies

Demand for phones at Amazon is 5,000 per month. The holding cost at Amazon is 25 percent and the company incurs a fixed cost of $500 for each order placed. The supplier offers an all unit quanitity discount with a price of $200 per phone for all orders under 10,000, a price of $195 for all orders of 10,000 or more but under 20,000 and a price of $190 for all orders of 20,000 or more. How many phones should Amazon order per replenishment? Please show work!

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Operation Management, Management Studies

Category:- Operation Management
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