An eyeglass retailer buys lenses from a supplier at $100 each. The retailer orders 250 lens pairs every year and the ordering cost is $36. Carrying costs per year (based on average inventory) are estimated to be 20% for each pair. The supplier offers a 10% on order quantities of 50 or more lens pairs. Determine the best order quantity and total cost
An eyeglass retailer buys lenses from a supplier at $100 each. The retailer orders 250 lens pairs every year and the ordering cost is $36. Carrying costs per year (based on average inventory) are estimated to be 20% for each pair. The supplier offers a 10% on order quantities of 50 or more lens pairs. Determine the best order quantity and total cost
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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An eyeglass retailer buys lenses from a supplier at $100 each. The retailer orders 250 lens pairs every year and the ordering cost is $36. Carrying costs per year (based on average inventory) are estimated to be 20% for each pair. The supplier offers a 10% on order quantities of 50 or more lens pairs. Determine the best order quantity and total cost
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