A wholesaler has a steady demand for 50 items of a given product each month. The purchase cost of each item is 6 MU and the holding cost for this item is estimated to be 20% of the stock value per annum. Every order placed by the wholesaler cost 10 MU in administration charges regardless of the number ordered? Please mention formulas and do it in detail so I can understand.

A wholesaler has a steady demand for 50 items of a given product each month. The purchase cost of each item is 6 MU and the holding cost for this item is estimated to be 20% of the stock value per annum. Every order placed by the wholesaler cost 10 MU in administration charges regardless of the number ordered? Please mention formulas and do it in detail so I can understand.

Name: A wholesaler has a steady demand for 50 items of a given product each
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Description: A wholesaler has a steady demand for 50 items of a given product each month.The purchase cost of each item is 6 MU and the holding cost for this item is estimated tobe 20% of the stock value per annum. Every order placed by the wholesaler cost 10 MUi

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter10: Introduction To Simulation Modeling

Section10.4: Simulation With Built-in Excel Tools

Problem 14P

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