What are the three optimal order quantities

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Reference no: EM132728717

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 are the three optimal order quantities? (place your 3 answers in space provided under this chart. Show only the numbers.)

Quantity
1 to 49
50 to 249
250 and up
Price
$5.00 per unit
$4.50 per unit
$4.10 per unit

What is the total annual cost which represents the optimal solution?(only one total cost)

Reference no: EM132728717

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