Question: A mail-order house uses 18,000 boxes a year. Carrying costs are 60¢ per box a year, and order costs are $96. The following price schedule applies. Determine

1. The optimal order quantity
2. The number of orders per year

Number of boxes Price per box

1,000 to 1,999 $1.25

2,000 to 4,999 $1.20

5,000 to 9,999 $1.15

10,000 or more $1.10

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document