QUESTION 16 Consider a university that demand for r Order Size 100-199 200-499 5

Question

QUESTION 16 Consider a university that demand for r Order Size 100-199 200-499 500+ purchases replacement chairs for its classrooms. The t chairs is 500. The pricing schedule is as follows: Price $130 $122 $120 Use the following Excel solution to this quantity discount problem with constant carrying cost Carrying cost--$ 15 Ordering cost 200 500 Annual Demand Quantity Price Discount Total Cost 100$130 115.47 115.47$ 66,732.05 200 500 200.00 $ 63,000.00 500.0063,950.00 $122 $120 115.47200.00 S Ref ence: Ref 13.1 What is the carrying cost using the economic order quantity? 9 A $3,750 B. $866 C$1500 D. $750 QUESTION 17

Explanation / Answer

the EOQ is 115.4

the carrying cost per order is $15

the total carrying cost= 115.4*15= 1732

option C is approximate answer, the remaining are not appropriate answers

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