Ex. 11.15 check
All Unit Discount (Exercise 11-15)
Fixed cost per order = 500.00$ per order
Monthly demand = 5,000
Holding percentage = 25%
Pricing:
Min Qty Max Qty Price per sq. ft.
0 9,999 200.00$
10,000 19,999 195.00$
20,000 190.00$
Range
i QAdjust to q Total Cost
0 1,095 1,095 12,054,772$
1 1,109 10,000 11,946,750$
2 1,124 20,000 11,876,500$
Without Quantity Discount
Price per unit Q Total Cost
200.00$ 1,095 12,027,660$
Exercise 11-15 (All Unit Quantity Discount)
Fixed cost per order = 500.00$ per order
Monthly demand = 5,000
Holding percentage = 25%
Pricing: Min Quantity Price per sq. ft.
0 200.00$
10,000 195.00$
Ex. 11.15
15,500 195.00$ 377,813$ 1,935$ 11,700,000$ 12,079,748$
16,000 195.00$ 390,000$ 1,875$ 11,700,000$ 12,091,875$
16,500 195.00$ 402,188$ 1,818$ 11,700,000$ 12,104,006$
17,000 195.00$ 414,375$ 1,765$ 11,700,000$ 12,116,140$
17,500 195.00$ 426,563$ 1,714$ 11,700,000$ 12,128,277$
18,000 195.00$ 438,750$ 1,667$ 11,700,000$ 12,140,417$
18,500 195.00$ 450,938$ 1,622$ 11,700,000$ 12,152,559$
19,000 195.00$ 463,125$ 1,579$ 11,700,000$ 12,164,704$
19,500 195.00$ 475,313$ 1,538$ 11,700,000$ 12,176,851$
20,000 190.00$ 475,000$ 1,500$ 11,400,000$ 11,876,500$
20,500 190.00$ 486,875$ 1,463$ 11,400,000$ 11,888,338$
21,000 190.00$ 498,750$ 1,429$ 11,400,000$ 11,900,179$
21,500 190.00$ 510,625$ 1,395$ 11,400,000$ 11,912,020$
22,000 190.00$ 522,500$ 1,364$ 11,400,000$ 11,923,864$
22,500 190.00$ 534,375$ 1,333$ 11,400,000$ 11,935,708$
ex. 11.15 chart
$11,850,000
$11,900,000
$11,950,000
$12,000,000
$12,050,000
$12,100,000
$12,150,000
$12,200,000
$12,250,000
$12,300,000
0 5,000 10,000 15,000 20,000 25,000
Annual Cost
Order Size
Total Annual cost versus Order Size