Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
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
