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Susan Holland supplier can deliver only 10 of these per day, but if she orders more than this, the supplier will deliver 10 each day until the entire order is met. Her annual demand for these is 1,000, and the sales are relatively constant for each of the 250 days that her store is open. The cost of placing an order is $20, while the holding cost per unit per year is $2. If she could convince her supplier to deliver her entire order on a single day, would this increase or decrease her carrying plus ordering cost?
Answer:
Answer: DECREASE!
Read the question carefully, if the supplier delivers 1000 the cost is $20 plus $2.
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Answer:
Answer: DECREASE!
Read the question carefully, if the supplier delivers 1000 the cost is $20 plus $2.
What grade are you in?
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