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A manufacturer of exercise equipment purchases the pulleysection of the equipment from a supplier who lists these prices: less than 1000, $5.9 each; 1,000 to 3,999, $5.5each; 4,000 to 5,999, $5.0 each; and 6,000 or more, $4.6 each. Ordering costs are $70per order, annual carrying costs are 30 percent ofthepurchase cost, and annual usage is 5,000 pulleys. Determine an order quantity that will minimize the total cost (Ordering + Holding + Purchase).

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M91727503

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