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A mail-order house uses 17,630 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.
1,000 to 1,999
1.25
2,000 to 4,999
1.20
5,000 to 9,999
1.15
10,000 or more
1.10
a. Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity boxes.
b. Determine the number of orders per year. (Round your answer to 2 decimal places.) Number of order per year.
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