Math Solutions

[Solved] The annual demand, ordering cost, and the inventory carrying cost rate for a certain item are: D = 600 units S = $20/order Holding Cost = 30% of item

Question: The annual demand, ordering cost, and the inventory carrying cost rate for a certain item are:

D = 600 units

S = $20/order

Holding Cost = 30% of item price

Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost?

Quantity 1 to 49 50 to 249 250 and up
Price $5.00 per unit $4.50 per unit $4.10 per unit

Price: $2.99
Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document


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