Santos Company buys 500 boxes of items A-1 every two months. Order costs are P380 per order. Carrying cost are P1 per unit , and vary directly with inventory investment. Currently the company purchases the item for P5 each. a. What is the order –size decision the company should make, if the supplier give a 5% discount for order sizez of P3,000 units?
Santos Company buys 500 boxes of items A-1 every two months. Order costs are P380 per order. Carrying cost are P1 per unit , and vary directly with inventory investment. Currently the company purchases the item for P5 each. a. What is the order –size decision the company should make, if the supplier give a 5% discount for order sizez of P3,000 units?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Santos Company buys 500 boxes of items A-1 every two months. Order costs are P380
per order. Carrying cost are P1 per unit , and vary directly with inventory investment.
Currently the company purchases the item for P5 each.
a. What is the order –size decision the company should make, if the supplier give a 5%
discount for order sizez of P3,000 units?
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