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Tastee mart order given the short -term price reduction

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Reference no: EM131664904

Problem: Flakes is 500 boxes per week. Tastee Mart sells Frostee Flakes. Demand for Frostee a fixed cost of SI00 for each Tastee Mart has a holding cost of 30 percent and incurs replenishment order it places for Frostee Flakes. Given that cost is $2 per box of Frostee Flakes, how much should Tastee Mart order in each replenishment lot? If a trade promotion lowers the price of Frostee Flakes to $1.80 for a month. How much should Tastee Mart order given the short -term price reduction?

Reference no: EM131664904

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