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Management Studies

The Weighty Trash Bag Company has the following price schedule for its large trash can liners. For orders less than 500 bags, the company charges 30 cents per bag; for orders 500 or more but fewer than 1000 bags, it charges 29 cents per bag; and for orders of 1,000 or more it charges 28 cents per bag. First, compute annual demand, ordering cost, and holding cost.

a) How many large trash can liners should a company by from Weighty Trash in order to minimize its annual cost?

b) What is the total annual cost of ordering Q?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92589641

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