What order quantity would you advise

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Q. A small refrigeration shop stocks up on electric motors from a catalog supplier located in Midwest. Price of motors varies depending on quantity purchased; price breaks are shown in table. Refrigeration shop knows it will need around 600 motors for coming season and that it will cost m about $40 to place an order. Storage cost for motors is $10 each. In previous years y have bought all 600 at once and y are considering doing this again. What order quantity would you advise and how much can y save using your recommendation instead of their one order per year strategy?

Reference no: EM1372637

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