Calculate the optimal order quantity

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A watch repair shop buys batteries for a variety of products. The most frequent battery purchase is for a Y300, with demand of 3,000 per year. The order cost is $15 per order, the holding cost is .50 per battery.

Given the following price schedule calculate the optimal order quantity. 1-249 $6; 250-499 $5.5; 500-999 $5; and 1,000+ $475 Show your work please be original.

Reference no: EM132052732

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