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bulgar [2K]
3 years ago
12

Firm B's demand for a product is 12 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with

a 10% discount for orders of 25 units or higher. Firm B incurs a 30% annual holding cost. What is the optimal order quantity for Firm B?
Business
1 answer:
Dahasolnce [82]3 years ago
3 0

Answer:

25

Explanation:

Base on the scenario been described in the question, Firm B's demand for a product is 12 units per month, and the supplier charges an ordering cost of $5 per $10 per unit with a 10% discount for orders of 25 units or higher, the optimal quantity firm B can order is 25.

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