Average holding cost per unit per annum

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A retail store imports an enterprise model solid-state drive (SSD) at a fixed price of $200 per unit from the sole distributer of the SSD.

The store received an offer of 15% discount on orders of 80 or more units. The estimated sales for the year are 300 units, the cost incurred per order is $100 and the average holding cost per unit per annum is estimated to be $6 per unit.

Decide the optimal quantity for the store to buy in each order (round up to the nearest integer).

Reference no: EM132955870

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