Operations Management~Inventory~EOQ
Jersey Products offers the following discount schedule for its 4- by 8-foots sheets of good quality plywood:
|
Order |
Unit Cost |
|
9 sheets or less |
$18.00 |
|
10 to 50 sheets |
$17.50 |
|
More than 50 sheets |
$17.25 |
Stockton College orders plywood from Jersey Products. Stockton College has an ordering cost of $45 and the annual carrying cost is 15% of the inventory value. If annual demand is for 100 sheets, what do you recommend?
If the company works 250 days per year, how many workdays between orders?
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