Your distribution company has an annual demand of 1,400 lawn mowers. The cost of a lawn mower is $400. Carrying cost is estimated to be 20% of unit cost, and the ordering cost is $25 per order. If you order in quantities of 330 or more, you can get a 5% discount. Do a complete “EOQ with Discount” calculation and determine the optimal order quantity. Please show all calculations

Your distribution company has an annual demand of 1,400 lawn mowers. The cost of a lawn mower is $400. Carrying cost is estimated to be 20% of unit cost, and the ordering cost is $25 per order. If you order in quantities of 330 or more, you can get a 5% discount. Do a complete “EOQ with Discount” calculation and determine the optimal order quantity. Please show all calculations

Name: Your distribution company has an annual demand of 1,400 lawn mowers.
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Description: Your distribution company has an annual demand of 1,400 lawn mowers. The cost of a lawn mower is $400. Carrying cost is estimated to be 20% of unit cost, and the ordering cost is $25 per order. If you order in quantities of 330 or more, you can get

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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