The annual demand and ordering cost

Reference no: EM13334662

The annual demand, ordering cost, and the inventory carrying cost rate for a certain item are D = 600 units, S = $20/order and I = 30% of item price. Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost?

Quantity 1 to 49 50 to 249 250 and up

Price $5.00 per unit $4.50 per unit $4.10 per unit

Reference no: EM13334662

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