What happen if price break offered for purchase quantities


"Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year.

Item cost $10.00
Order cost $250.00
Annual holding cost (%) 33% of item cost
Annual demand 25,750
Average demand 515 per week
Standard deviation of weekly demand 25 per week
Lead time 1 week
Service probability 95%

If a price break of $50 per order was offered for purchase quantities over 2,000, would you take advantage of it? (Enter YES or NO)

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Operation Management: What happen if price break offered for purchase quantities
Reference No:- TGS078966

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