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Posted: June 27th, 2020
Need help with this question! operations management
Question description
Bell Computers purchase integrated
chips at $350 per chip. The holding cost is $36 per unit per year the ordering
cost is $123 per order, and sales are steady at 405 per month. The company’s
supplier Rich Blue Chip Manufacturing, Inc., decides to offer price concessions
in order to attract larger orders. Quantity Purchased Price/Unit 1-99 units
$350,100-199 units $325, 200 or more units $300. A. What is the optimal order
quantity and the minimum cost for Bell Computers to order purchase and hold
these integrated chips? The optimal order quantity after the change in pricing
structure is.The total annual cost for Bell computers to order purchase and hold
the integrated chips is?
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