A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, andordering costs are $96. The following price schedule applies. Determine the following:a. The optimal order quantityb. The number of orders per yearNumber of Boxes Price per Box1,000 to 1,999 $1.25 2,000 to 4,999 1.205,000 to 9,999 1.1510,000 or more 1.10

A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, andordering costs are $96. The following price schedule applies. Determine the following:a. The optimal order quantityb. The number of orders per yearNumber of Boxes Price per Box1,000 to 1,999 $1.25 2,000 to 4,999 1.205,000 to 9,999 1.1510,000 or more 1.10

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Description: A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, andordering costs are $96. The following price schedule applies. Determine the following:a. The optimal order quantityb. The number of orders per yearNumber of B

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter3: Introduction To Optimization Modeling

Section3.8: A Multiperiod Production Model

Problem 22P

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