Should publix stick with the old supplier or take advantage


Publix sells whole grain pasta for which the annual demand is 5,000 boxes. At the moment, it is paying $6.40 for each box; carrying cost is 25% of the unit cost; ordering costs are $25. A new supplier has offered to sell the same item for $6.00 if Publix buys at least 3,000 boxes per order. Should Publix stick with the old supplier, or take advantage of the new quantity discount?

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Operation Management: Should publix stick with the old supplier or take advantage
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