led view
Subject:BusinessPrice: Bought3
led view. Enable Editing D TI Question 4 (20 points) The catering manager of La vista hotel, Lisa, decides to expand the amount of silverware and wants to take advantage of quantity discounts the vendor offers. For a small order (2,000 or fewer), her vendor quotes a price of $1.80/piece. If she orders (2001-5000), the price drops to $1.60/piece. If she orders (5001-10,000), the price is $1.40/piece. If she orders (above 10,000), the price is $1.25/piece. Lisa order's cost are 200$ per order, her annual holding cost are 5%, and the annual demand is 15,000 pieces. Question based on the lecture titled "quantity discounts” (slides 1-8). a) What is the best option between discounts, please explain your choice? What is the optimal order quantity? b) What is the annual holding cost of best choice? c) What is the annual order cost of best choice? d) What is the annual purchasing cost of best choice? e) What is annual total cost of best choice? A
