What is the most economical quantity to order at a time

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Reference no: EM131747101

EOQ with Quantity Discounts:

A producer of photo equipment buys lenses from a supplier at $100 each. The producer requires 12,500 lenses per year. The ordering cost is $50/order. Carrying cost %/year is estimated to be 30%. The supplier offers a rate of $95 for purchase of minimum 150 lenses, and $90 for purchase of minimum 300 lenses.

What is the most economical quantity to order at a time?

Reference no: EM131747101

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