A service garage uses 120 boxes of cleaning cloths per year


A service garage uses 120 boxes of cleaning cloths per year. The boxes cost $6/each. Ordering costs are $3/order and holding cost is 10% of the purchase price per box per year. The supplier is offering a purchase price break. If the garage orders 50 boxes per order, the price will be reduced to $5.75 per box. What is the total cost (TC) at Q=50?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: A service garage uses 120 boxes of cleaning cloths per year
Reference No:- TGS01275396

Expected delivery within 24 Hours