The raw chicken supplier offered price discount to $5 per kg if quantity purchase is above...
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The raw chicken supplier offered price discount to $5 per kg if quantity purchase is above 1,500 kg. Otherwise the price is $7 per kg. Cost per order is $30 per order. The average holding cost for the chicken for the buyer is about 12% per year. |
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Compute the optimal reorder quantity (raw chicken) for the chicken rice seller if the forecasted annual demand for raw chicken is 20,000 kg per year. |
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Note: TC = (C x D) + (S x D) / Q + (h x C x Q)/2 |
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The raw chicken supplier offered price discount to $5 per kg if quantity purchase is above...
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