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  1. business
  2. operations management
  3. demand /yearly = 12,000, s = $16, and h =10% of th

Demand /yearly = 12,000, S = $16, and H =10% of the Price Offer. Discount Quantity,...

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Question

Operations Management

Demand /yearly = 12,000, S = $16, and H =10% of the Price

Offer. Discount Quantity, Discount (%), Discount Price (P)

1. 1 to 999, no discount, $5.00

2. 1,000 to 1,999, 4%, $4.80

3. 2,000 and over, 5%, $4.75

(a) Evaluate the number of computers that the store managershould order in each replacement lot.

(b) Maximum Inventory

(c) Average Inventory

(d) The total annual number of order cycles

(e) Length of the order cycle

(f) Average flow time

(g) Annual inventory-related cost (Yearly total cost)

Answer & Explanation Solved by verified expert
4.0 Ratings (799 Votes)
a For order quantity 1 to 999 EOQ sqrt2DSh sqrt21200016105 876356092 Total inventory related cost order costholding costpurchase cost 12000876356092168763560922105120005 6043817805 For order quantity 1000 to 1999 EOQ sqrt2DSh    See Answer
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