(Step-by-Step) - Suppose a supplier has the following discount policy for the raw material "X": The first 199 units, a K 1 = $20/unid. The next 300 units,
Question: - Suppose a supplier has the following discount policy for the raw material "X":
The first 199 units, a K 1 = $20/unid.
The next 300 units, a K 2 = $18/unid.
The next 500 units, a K 3 = $16/unid.
The following units, a K 4 = $15/unid.
Also, we know that D = 8,000 unid./year, C p = $100/order and C m = $5/unid.year.
- Determine the values of "B i " and "B’ i ".
- Determine the optimal amount to buy and the corresponding cost.
Deliverable: Word Document 