System to manage meal inventories

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Dave's Sporting Goods sells Mountain Mouse? freeze-dried meals.? Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume discounts to its? customers:

1-750 ?meals: ?$6.50 per meal

751 or more? meals: ?$4.50 per meal

Annual demand is 1,800

1,800 ?meals, and the cost to place an order is ?$24. Suppose the holding cost is ?$4.75 per meal per year. How many meals should? Dave's order at a?time?

?Dave's Sporting Goods should order ________ meals at a time to take advantage of the lower cost per unit. ?(Enter your response rounded to the nearest whole number.?)

Reference no: EM131760238

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