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question archive Wang Distributors has an annual demand for an airport metal detector of 1,400 units

Wang Distributors has an annual demand for an airport metal detector of 1,400 units

Subject:Operations ManagementPrice:2.87 Bought7

Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit costs, and the ordering is $25 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount?

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