Answers:


1) a) $1,982.00

b) 253.9907 boxes

c) $1,351.23

d) 27.024 orders per year

e) 13.5 days

f) 485.91 boxes

g) $706.30

h) 353.15 boxes

i) 72.68 %

j) $101.08

k) $1,317.01

 
2) a) 5,700.88 tons

b) 8 days

c) 11.56 days

d) 1,754.12 tons

e) $631,481.77

 
3) a) 24.1661 monitors

b) We must consider the Total Cost for the EOQ Q* and the successive price breaks:


Q
TC ($)


24.1661
289,558.30
   
31
285,945.97
   
41
284,621.10
   
51
284,071.27
   
101
284,449.55
   
201
286,147.64
       


Therefore, the optimal policy is to order 51


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