# Mathematics Chapter 12 Homework Problem 12-34 Results Economic Order Quantity Adjusted Order Quantity

Type Homework Help
Pages 2
Words 101
Authors Barry Render, Jr. Ralph M. Stair, Nagraj Balakrishnan

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Problem 12-34
Inventory Quantity Discount Model Discount at 200 = (10)x(\$9.90) + (1/1000)x(\$3,000)
= \$102.00
Discount per can = \$0.51
Input Data Discount at 300 = (30)x(\$9.90) + (1/1000)x(\$3,000)
Demand rate, D 1000 = \$300.00
Discount at 300 = (30)x(\$9.90) + (1/1000)x(\$3,000) + (1/800)x(\$5,000)
Range 1 Range 2 Range 3 Range 4 = \$405.25
Minimum quantity 100 200 300 400 Discount per can = \$1.01
Results
Range 1 Range 2 Range 3 Range 4
Economic order quantity, Q* 141.42 141.42 141.42 141.42
Cost Table for Graph Start at 106.00 Increment by 17.00
Q Unit cost Setup cost Holding cost Total unit cost Total Cost
8600.00
9000.00
9400.00
9800.00
10200.00
Cost
Quantity
Total Cost vs Order Quantity

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