An item sells for 25 a unit but a 10 discount is offered


An item sells for $25 a unit but a 10% discount is offered for lots of 150 or more. A company uses this item at the rate of 20 units per day. The setup cost for ordering a lot is $50 and the holding cost per unit per day is $.30. The lead time is 12 days. Determine the optimal inventory policy.

Solution Preview :

Prepared by a verified Expert
Finance Basics: An item sells for 25 a unit but a 10 discount is offered
Reference No:- TGS02198762

Now Priced at $20 (50% Discount)

Recommended (90%)

Rated (4.3/5)