What order size placed to minimize total annual cost, Operation Management

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What order size placed to minimize total annual cost

A.K. Plywood Products offers the following all-units quantity discount schedule for its 4 feet by 8 feet sheets of quality plywood.

Order Size Price
1-9 sheets $25
10-49 sheets $23
50-99 sheets $21
100 sheets or more $18

Miami Home Furnishings (MHF) orders plywood from A.K. Plywood Products. MHF's accounting department determines an ordering cost of $50 per order and an annual inventory holding cost percentage of 20% of the price of the item. The annual demand is 250 sheets. What should the order size be every time that an order is placed to minimize total annual cost?

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Operation Management: What order size placed to minimize total annual cost

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Operation Management: What order size placed to minimize total annual cost

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Recent Questions Asked Operation Management

Q : What is the annual ordering cost

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Operation Management: What order size placed to minimize total annual cost

Reference No:- TGS076192

Recent Questions Asked Operation Management

Q : What is the annual ordering cost

Q : Re-figure the depletion rate for year 2

Q : Recent articles on the s corporation

Q : What is the variable cost per unit

Q : What order size placed to minimize total annual cost

Q : How should ace record the purchase

Q : What is the return on common stockholders'' equity

Q : Why is it important that a sample be random

Q : Discuss the relationship between purpose and thesis

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