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Demand for an item is 20019 units per year. Each order placed costs $80. The annual carrying cost percentage per item in inventory is 22% each. The variable purchase cost is $2.50 per unit if less than 3000 units will be ordered, $2.40 from 3000 units up to but not including 4000 units and $2.30 for at least 4000 units. These are all unit discounts. What is the optimal order quantity for the unit cost of $2.50?
What is the optimal realizable/feasible total annual cost at a unit cost of $2.50
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