What is the optimal lot size with the promotion

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Reference no: EM133411652

Question: Dominick's supermarket chain sells Nut Flakes. a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 10GB boxes per week. Dominick's has a holding cost of25 percent and incurs a fixed trucking cost of $200 for each replenishment order it places with Tastee. Tastee normally charges 82 per box of Nut Flakes. Tastee runs a trade promotion, lowering the price of Nut Flakes to $1.80 for a month Continuing on with Dominick's supermarket from above. what is the optimal lot size with the promotion?

Reference no: EM133411652

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