Mail order
September 14th, 2022
Problem 13-13
A mail-order house uses 16,820 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. |
Number of Boxes | Price per Box |
1,000 to 1,999 | $1.25 |
2,000 to 4,999 | 1.20 |
5,000 to 9,999 | 1.15 |
10,000 or more | 1.10 |
|
a. |
Determine the optimal order quantity. (Round your answer to the nearest whole number.) |
Optimal order quantity | [removed] boxes |
b. |
Determine the number of orders per year. (Round your answer to 2 decimal places.) |
Number of order | [removed] per year |