Demand for phones at amazon is 5000 per month the holding


Demand for phones at Amazon is 5,000 per month. The holding cost at Amazon is 25 percent and the company incurs a fixed cost of $500 for each order placed. The supplier offers a marginal unit quantity discount with a price of $200 per phone for the first 10,000 phones in an order, a price of $195 for the next 10,000 phones in the order, and a price of $190 for the quantity above 20,000 in the order. How many phones should Amazon order per replenishment?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Demand for phones at amazon is 5000 per month the holding
Reference No:- TGS01272295

Expected delivery within 24 Hours