OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
7th Edition
ISBN: 9780077835439
Author: Roger G Schroeder, M. Johnny Rungtusanatham, Susan Meyer Goldstein
Publisher: McGraw-Hill Education
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Chapter 14.S, Problem 1P

eXcel Suppose that for problem 1 in the chapter, the Always Fresh Grocery Store is offered a discount by its supplier if more than 50 cases of tea are ordered at one time. The unit item costs are S80 per case for o to 49 cases and S76 per case for 50 cases or more. This price of $76 applies to the entire order.

  1. a. Should the grocery store take the discount offer?
  2. b. What discount is required for the store to be indifferent between taking the discount and ordering the EOQ?
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OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)

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