IM.81 An appliance distributor in Arizona has high-volume sales for an ice cleaner solution. The manufacturer of this cleaner offers quantity discounts per the following discount schedule
|
Quantity |
Unit Price |
|
1 - 399 |
$15.00 |
|
400 - 1,199 |
$14.50 |
|
1,200+ |
$14.00 |
The appliance distributor pays $60 each time it places an order with the manufacturer. Holding costs are $4.50 per unit. Annual demand is expected to be 3,600 units.
1. Based on this information, which quantity discount option should you select? (In the answer field below, write the number the corresponds to your answer. Do not put a period after the number.)
1. Quantity Discount 1 - 399
2. Quantity Discount 400 - 1,199
3. Quantity Discount 1,200+
2. What is the annual holding cost for this option? (Display your answer to the nearest whole number).
3. What is the total annual inventory cost for this option? (Display your answer to the nearest whole number).
4. What is the total annual inventory cost for this option? (Display your answer to the nearest whole number).
5. What is the total annual inventory cost for this option? (Display your answer to the nearest whole number).
6. What is the annual material cost for this option? (Display your answer to the nearest whole number).
7. What is the total annual inventory cost for this option? (Display your answer to the nearest whole number).
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