solution

Clement Bait and Tackle has been buying a chemical water conditioner for its bait (to help keep its bait-fish alive) in an optimal fashion. Current data for the problem are: D = 840 units per year; S = $12.00, H = 18% per year; P = $28.

a. What is the EOQ at the current behavior? [Select)

b. What is the annual total cost, including product cost, of continuing their current behavior? (Select) Clement Bait and Tackle’s supplier has now offered a discount of $0.75 off all units if the firm will make its purchases monthly by placing at least 70, but no more than 209, or $1.25 off If the firm will make its purchases quarterly, placing at least 210 orders)

c. What are the annual total costs, if they accept either of the proposed discounts? – First proposed discount level (Select) Second proposed discount level Select) Based on cost, how much should Clement Bait and Tackle order. each time they place an order? Select)
d. What decision should Clement Bait and Tackle choose? Select]
e. Based on the decision in letter d., what is the total holding cost of that decision?
 
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