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Question One
a) A company uses 140,000 units of Material X each year, which costs Tsh 30 for
each unit before discount. The costs of making an order are Tshs 700 for each
order. The annual cost of holding inventory is 10% of the purchase
cost. The
supplier will offer a price discount of Tshs 4
per
unit for orders of
26,000 up to
41,000 units, and a discount of Tshs 7 per unit for orders of 41,000 units
or more.
What is the order
quantity that will minimize total costs
? (15 marks)
Question
The foll
20x9
Pa