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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 584 |
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To find the lowest-cost order quantity, one needs to calculate the economic order quantity for each possible price and check to see whether the quantity is feasible. It could either be higher or lower than the range to which the price corresponds. The calculations are already simplified since the holding costs is based on a percentage of unit price and if it where fixed, thus we would need to look at additional subset price-break quantities otherwise...
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The calculations are already simplified since the holding costs is based on a percentage of unit price and if it where fixed, thus we would need to look at additional subset price-break quantities otherwise.
6) When are items ordered? How much to order (quantity)?
7) In price-break problems, price reduction from volume purchases frequently makes it seemingly economical to order amounts larger than the optimal quantity...
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