Calculate the optimal feasible order quantity EOQ

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Reference no: EM132266756

Annual Demand(D)=20,000 units

Ordering Cost(S)= $40 per order

Purchase Price(P)= see table

Holding Rate(I)=20%

Quantity Q Purchase Price P

1 – 499 $20

500 – 999 $18

1000 and more $17

1- Calculate the optimal feasible order quantity EOQ.

2- Calculate corresponding total annual cost and determine: How many units should be purchased with each order?

Reference no: EM132266756

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