The maintenance department of a large hospital uses 712 cases of liquid cleanser annually. Ordering cost are $12, carrying cost are $3 per case per year, and the new price schedule indicates that orders of less than 50 cases will cost $17 per case, 50 to 79 cases will cost $15 per case, 80 to 99 cases will cost $15 per case and the larger orders will cost $12 per case. Determine the optimal order quantity and the total cost.

The maintenance department of a large hospital uses 712 cases of liquid cleanser annually. Ordering cost are $12, carrying cost are $3 per case per year, and the new price schedule indicates that orders of less than 50 cases will cost $17 per case, 50 to 79 cases will cost $15 per case, 80 to 99 cases will cost $15 per case and the larger orders will cost $12 per case. Determine the optimal order quantity and the total cost.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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