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A mail-order house uses 16,190 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.
Number of Boxes Price per Box
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
Problem 1: Determine the optimal order quantity. (Round your answer to the nearest whole number.)
Problem 2: Determine the number of orders per year.
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