Marisa Williams runs a retail grocery store and purchases items for resale to her customers. She is facing an ordering decision about how much of a particular item to purchase at one time.. in order t take advantage of supplier discounts (if it makes sense to do so).
Demand = 36,000 units per year
order cost = $25 per order
Carrying cost = $0.45 per unit
purchasing price = $0.85
Discount price= $0.82 (if buy a minimun of 6,000 units per order)
Should she take discount (show your work)
What other aspectsa bout the purchase decision for this item should she consider?
If this item were highly perishable and had a carrying cost of $0.65/unit, would it still make sense?