Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter C, Problem 6P

To boost sales, Pfisher (refer to Solved Problem 2) announces a new price structure for disposable surgical packages. Although the price break 110 longer is available at 200 units, Pfisher now offers an even greater discount if larger quantities are purchased. On orders of 1 to 499 packages, the price is $50.25 per package. For orders of 500 or more, the price per unit is $47.80. Ordering costs, animal holding costs, and annual demand remain at $64 per order, 20 percent of tile per-unit cost, and 490 packages per year, respectively. What is the new lot size?

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