A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 8400 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5: quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best order quantity that minimizes the total annual inventory cost is a. 500 O b. 199 None is correct d. 200 O e. 371

A fresh food company in Oman is specialized in apples distribution in Oman. Annual sales forecast is 8400 boxes of apple. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per box per year. The prices depend on quantities purchased such that the order quantities (in boxes) from 1 to 199 at a unit price RO 5: quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the best order quantity that minimizes the total annual inventory cost is a. 500 O b. 199 None is correct d. 200 O e. 371

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 16P

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