Bank Drugs sells Jami Michelle lipstick.Jami Michelle Company offers a 6% discount on orders of at least 500 tubes,a 10% discount on orders of at least 1000 tubes,a 12% discount on orders of at least 1800 tubes,and a 15% discount on orders at least 2500 tubes.
Bank sells an average of 40 tubes of Jami Michelle lipstick weekly.The normal price paid by Bank Drugs is $1 per tube.If it costs Bank $30 to place an order and Bank's annual holding cost rate is 27%,determine the optimal order policy for Bank Drugs.

Question

Bank Drugs sells Jami Michelle lipstick.Jami Michelle Company offers a 6% discount on orders of at least 500 tubes,a 10% discount on orders of at least 1000 tubes,a 12% discount on orders of at least 1800 tubes,and a 15% discount on orders at least 2500 tubes.​
Bank sells an average of 40 tubes of Jami Michelle lipstick weekly.The normal price paid by Bank Drugs is $1 per tube.If it costs Bank $30 to place an order and Bank's annual holding cost rate is 27%,determine the optimal order policy for Bank Drugs.

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The Answer of Bank Drugs sells Jami Michelle lipstick.Jami Michelle Company offers a 6% discount on orders of at least 500 tubes,a 10% discount on orders of at least 1000 tubes,a 12% discount on orders of at least 1800 tubes,and a 15% discount on orders at least 2500 tubes.​
Bank sells an average of 40 tubes of Jami Michelle lipstick weekly.The normal price paid by Bank Drugs is $1 per tube.If it costs Bank $30 to place an order and Bank's annual holding cost rate is 27%,determine the optimal order policy for Bank Drugs.

Bank Drugs Sells Jami Michelle Lipstick