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Numerical problemsQuantity Price Quantity (units) Price ($)/unit
A community hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 40,000 pairs of gloves per year. The cost to order and to have the gloves delivered is $180 per order. The annual carrying cost is $0.18 of the purchase price, per pair of gloves. The hospital supply firm offers the following quantity discount pricing schedule:
0 - 9,999 0.34
10,000 - 19,999 0.32
20,000 - 29,999 0.30
30,000 - 39,999 0.28
40,000 - 49,999 0.26
50,000+ 0.24
Determine the optimal order size for the hospital
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