Stock of quantitative analysis

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Question

Prentice Hall wants to reduce a large stock of Quantitative Analysis books from their warehouse. They have offered the JU Bookstore a quantity discount pricing schedule, with a price of $150 for orders up to 99 books, and $148 for orders of at least 100 books. Assuming the annual demand rate is 400 books, the ordering cost is $20, and the annual holding cost is $3 per textbook,

a. What should your order size be if you want to minimize total cost?

b. What is the minimum TOTAL ANNUAL COST?

Reference no: EM133524093

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