Icy Snowmobile, Inc., has an annual demand for 1,200 snowmobiles. Their purchase cost for each…



7. Icy Snowmobile, Inc., has an annual demand for 1,200 snowmobiles. Their purchasecost for each snowmobile is $2,500. It costs about $250 to place an order, and theholding rate is 35 percent of the unit cost. Compute the (a) EOQ, (b) annual holdingcost, (c) annual order cost, and (d) total annual inventory cost.8. Steamy Speedboats has an annual demand for 1,500 speedboats. Its supplier offersquantity discounts to promote larger order quantities. The cost to place an order is$300, and the holding rate is 32 percent of the purchase cost. The purchase cost foreach speedboat is based on the price schedule given below. Compute the (a) optimalorder quantity, (b) annual purchase cost, (c) annual holding cost, (d) annual ordercost, and (e) total annual inventory cost.ORDER QUANTITY PRICE PER UNIT1–50 $18,50051–100 $18,000101–150 $17,400151 and above $16,800 “Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”  “Is this question part of your assignment? We Can Help!”

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