What is the optimal order quantity

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Reference no: EM1383625

Annual demand for an item is 40,000 units. The holding cost rate is 30% of the item cost. Ordering costs are $60/ order. Quantity discounts are available according to the schedule below:

Quantity Price per Unit ($)
1-99         90.00
100-299    85.00
300-399    80.00
400+         78.00

What is the optimal order quantity (select the closest number) ?

From the previous problem, what is the total annual inventory cost of your policy (select the closest number)?

Continued from the previous 2 problems. Assume 52 five-day weeks per year. If the lead-time is 5 weeks, what should the reorder point be (select the closest number)?

Reference no: EM1383625

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