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A company will begin stocking remote control devices. Expected monthly demand is 900 units. The controllers will be purchased from RCD supplier offering price breaks for quantities. RCD’s price list is as follows: Quantity Range Unit Price 0 to 199 15.00 200 to 499 14.80 500 to ∞ 14.30 Given that ordering cost is $35 and annual holding cost is 0.25 of unit price per unit, provide the following results:
What is the feasible quantity?
What is the total annual ordering cost at this quantity? $
What is the total annual holding cost at this quantity? $
What is the total annual material cost at this quantity? $
What is the total annual cost at this quantity? $
What is the most economical quantity to order?
What is the savings in total annual cost at this quantity? $
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