What order quantity will minimize the total inventory cost

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Reference no: EM131475497

Discount Store stocks toy race cars. Recently, the store has been given a quantity discount schedule for these cars. This quantity schedule was shown in Table. Thus, the normal cost for the toy race cars is $5. For orders between 1000 and 1999 units, the unit cost drops to $4.80; for orders of 2000 or more units, the unit cost is only $4.75. Furthermore, ordering cost is $49 per order, annual demand is $5000 race cars, and inventory carrying charge, as a percent of cost is %20. What order quantity will minimize the total inventory cost?

Reference no: EM131475497

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