ABX Enterprise

ABX Enterprise uses an chemical that must be kept in an environment where both temperature and humidity can be controlled. ABX uses 700 pounds per month of the chemical, estimate the holding cost to be 25% of the purchase price (because of spoilage), and estimates order cost to be $45 per order.

QUANITY PRICE Q PRODUCT COST ORDERING COST HOLDING COST TOTAL COST

1-499 $20.00    

500-999 $18.75   

1000 + $16.00