Question The catering manager of LaVista Hotel, Lisa Ferguson, is distur

The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.

>For a small order (2,000 pieces or less) her vendor quotes a price of $1.80/piece.

>If she orders 2,001 to 5,000 pieces, the price drops to $1.60/piece.

>5,001 to 10,000 pieces brings the price to $1.40/piece, and

>10,001 and above reduces the price to $1.25/piece.

Lisa’s order costs of $205 per order, her annual holding costs are 5%, and the annual demand is 49,900 pieces. For the best option, (the best option is the price level that results in an EOQ within the acceptable range).

A) What is the optimum ordering quantity?

B) What is the annual holding cost?

C) What is the annual ordering cost?

D) What are the annual cost of the silverware with an optimal order quantity?

E) What is the total annual cost, including ordering, holding, and purchasing the silverware?

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.