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Suzie’s Sweetshop makes special boxes of Valentine’s Day chocolates. Each costs $15 in material and labor...

Suzie’s Sweetshop makes special boxes of Valentine’s Day chocolates. Each costs $15 in material and labor and sells for $32. After Valentine’s Day, Suzie reduces the price to $12.00 and sells any remaining boxes. Historically, she has sold between 45 and 105 boxes. Determine the optimal number of boxes to make. Do not round intermediate calculations. Round your answer to the nearest whole number.

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How would Suzie’s decision change if she can only sell all remaining boxes at a price of $6? Do not round intermediate calculations. Round your answer to the nearest whole number.

business   Operations-Management   
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Answer #1

        Optimal Order Quantity- At optimal order quantity the total annual inventory cost becomes lowest.

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