Ex. 11.12 check
All Unit Discount (Exercise 11-12)
Fixed cost per order = 400.00$ per order
Monthly demand = 20,000 sq. feet
Holding percentage = 0.2 0
Pricing:
Min Qty Max Qty Price per sq. ft.
0 19,999 1.00$
20,000 40,000 0.98$
40,000 0.96$
Range
i Q (Eqn 11.10) Adjust to q
Total Cost
(Eqn 11.11)
0 30,984 20,000 241,960$
1 31,298 31,298 241,334$
2 31,623 40,000 236,640$
Without Quantity Discount
Price per sq ft Q Total Cost
0.96$ 31,623 233,466$
Exercise 11-12 (All Unit Quantity Discount)
Fixed cost per order = 400.00$ per order
Monthly demand = 20,000 sq. feet
Holding percentage = 20%
Pricing: Min Quantity Price per sq. ft.
0 1.00$
20,000 0.98$
Ex. 11.12
30,000 0.98$ 2,940$ 3,200$ 235,200$ 241,340$
31,000 0.98$ 3,038$ 3,097$ 235,200$ 241,335$
32,000 0.98$ 3,136$ 3,000$ 235,200$ 241,336$
33,000 0.98$ 3,234$ 2,909$ 235,200$ 241,343$
34,000 0.98$ 3,332$ 2,824$ 235,200$ 241,356$
35,000 0.98$ 3,430$ 2,743$ 235,200$ 241,373$
36,000 0.98$ 3,528$ 2,667$ 235,200$ 241,395$
37,000 0.98$ 3,626$ 2,595$ 235,200$ 241,421$
38,000 0.98$ 3,724$ 2,526$ 235,200$ 241,450$
39,000 0.98$ 3,822$ 2,462$ 235,200$ 241,484$
40,000 0.96$ 3,840$ 2,400$ 230,400$ 236,640$
41,000 0.96$ 3,936$ 2,341$ 230,400$ 236,677$
42,000 0.96$ 4,032$ 2,286$ 230,400$ 236,718$
43,000 0.96$ 4,128$ 2,233$ 230,400$ 236,761$
44,000 0.96$ 4,224$ 2,182$ 230,400$ 236,806$
ex. 11.12 chart
Marginal Unit Quantity Discount (Exercise 11-12 Part 2)
Fixed cost per order = 400.00$
Monthly demand = 20,000 sq. feet
Holding percentage = 20 %
Pricing:
Min Qty Max Qty Price per sq. ft.
0 19,999 1.00$
20,000 40,000 0.98$
40,000 0.96$
Range V
(Eqn 11.12) Q (Eqn 11.13) Adjust to Q
Total Cost
(Eqn 11.14)
0 0 30,984 20,000 246,800$
1 20,000 44,263 40,000 243,960$
2 39,600 63,246 63,246 242,663$
Without Quantity Discount
Price per sq ft Q Total Cost
0.96$ 31,623 236,472$
Marginal Unit Quantity Discount (Exercise 11-12 Part 2)
Fixed cost per order = 400$ per order
Monthly demand = 20,000 sq. feet
Holding percentage = 20%
43000 0.988$ 4,248$ 2,233$ 237,098$ 243,578.23$
44000 0.987$ 4,344$ 2,182$ 236,945$ 243,471.27$
45000 0.987$ 4,440$ 2,133$ 236,800$ 243,373.33$
46000 0.986$ 4,536$ 2,087$ 236,661$ 243,283.83$
47000 0.986$ 4,632$ 2,043$ 236,528$ 243,202.21$
48000 0.985$ 4,728$ 2,000$ 236,400$ 243,128.00$
49000 0.984$ 4,824$ 1,959$ 236,278$ 243,060.73$
50000 0.984$ 4,920$ 1,920$ 236,160$ 243,000.00$
51000 0.984$ 5,016$ 1,882$ 236,047$ 242,945.41$
52000 0.983$ 5,112$ 1,846$ 235,938$ 242,896.62$
53000 0.983$ 5,208$ 1,811$ 235,834$ 242,853.28$
54000 0.982$ 5,304$ 1,778$ 235,733$ 242,815.11$
55000 0.982$ 5,400$ 1,745$ 235,636$ 242,781.82$
56000 0.981$ 5,496$ 1,714$ 235,543$ 242,753.14$
57000 0.981$ 5,592$ 1,684$ 235,453$ 242,728.84$
58000 0.981$ 5,688$ 1,655$ 235,366$ 242,708.69$
59000 0.980$ 5,784$ 1,627$ 235,281$ 242,692.47$
60000 0.980$ 5,880$ 1,600$ 235,200$ 242,680.00$
61000 0.980$ 5,976$ 1,574$ 235,121$ 242,671.08$
62000 0.979$ 6,072$ 1,548$ 235,045$ 242,665.55$
63000 0.979$ 6,168$ 1,524$ 234,971$ 242,663.24$
64000 0.979$ 6,264$ 1,500$ 234,900$ 242,664.00$
65000 0.978$ 6,360$ 1,477$ 234,831$ 242,667.69$
66000 0.978$ 6,456$ 1,455$ 234,764$ 242,674.18$
68000 0.978$ 6,648$ 1,412$ 234,635$ 242,695.06$
70000 0.977$ 6,840$ 1,371$ 234,514$ 242,725.71$
$244,000.000
$246,000.000
$248,000.000
$250,000.000
$252,000.000
Annual Cost
Total Cost with Varying Order Size