Amts purchasing department is trying to establish an


AMT's purchasing department is trying to establish an ordering policy for sheets that will minimize total costs. Forecasted demand for sheets for the next year is 200,000. The supplier's minimum order size is 1,000 and the supplier offers the following quantity discount schedule. Order Quantity Price 1,000-9,999 12.35 10,000-29,999 11.20 30,000+ 10.00 The purchasing department estimates the cost of placing an order at $300 and the inventory holding cost to be 15% of the unit cost. What is the optimal order quantity?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Amts purchasing department is trying to establish an
Reference No:- TGS02540743

Expected delivery within 24 Hours