In: Accounting
Harmons sells an average of 40 tubes of chapstick weekly. The
normal price paid by Harmons...
Harmons sells an average of 40 tubes of chapstick weekly. The
normal price paid by Harmons is $1 per tube it costs Harmons $25 to
place an order, and Harmons' annual holding cost rate is 20%.
Answer the following questions: 1. How many tubes of chapstick
should be ordered to minimize combined ordering and holding cost? 2
The supplier is willing to offer a 8% minimize combined ordering,
holding and purchasing cost? discount on orders of at least 800
tubes. How many tubes of chapstick should be order to minimize
combined odering, holding and purchasing