Determine optimal order quantity-total annual cost

Reference no: EM13335888

ABC Electronics uses 816 cases of special liquid cleanser annually. Ordering costs are $12 and carrying costs are $4 per case a year. The cleanser is priced as follows: 1 to 79 cases, $17 each; 80 to 99 cases, $18 each; and 100 cases or more, $20 each. Determine the optimal order quantity and the total annual cost.

Reference no: EM13335888

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