Jefferson Products offers the following all-units quantity discount schedule for its 4 feet by 8 feet sheets of quality plywood.
Order Size Price
1-9 sheets $25
10-49 sheets $23
50-99 sheets $21
100 sheets or more $18
Washington Home Furnishings orders plywood from Jefferson Products.The firm has an ordering cost of $50,an annual inventory holding cost percentage of 20%,and an annual demand of 250 sheets.What should the order size be every time that an order is placed?

Question

Quizplus · Accepted Answer

The Answer of Jefferson Products offers the following all-units quantity discount schedule for its 4 feet by 8 feet sheets of quality plywood.
Order Size Price
1-9 sheets $25
10-49 sheets $23
50-99 sheets $21
100 sheets or more $18
Washington Home Furnishings orders plywood from Jefferson Products.The firm has an ordering cost of $50,an annual inventory holding cost percentage of 20%,and an annual demand of 250 sheets.What should the order size be every time that an order is placed?

Jefferson Products Offers the Following All-Units Quantity Discount Schedule for Its