Which quantity should be ordered and at what cost

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Case 2 Introduction In the production of rebars, carbon steel is melted down through a furnace, is molded and elongated into very hot rods, and are then pushed through the rolling mills which determines the sizes and lengths of the bars as appropriate. The annual demand for Carbon steel is 40,000 pounds. Its ordering cost is $ 30.00 while it’s holding cost is 20% per unit per year of the price of Carbon Steel. Carbon steel are sold at discounted prices as follows: Quantity range Cost (C) Less than 2500 pounds $ 0 .20 per pound 2500 to 5000 pounds $ 0.19 per pound 5000 or more pounds $ 0.18 per pound Which quantity should be ordered and at what cost?

Reference no: EM132157070

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