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Q. A small computer firm orders monitors for sale. The Yearly demand is 1300 per year. The holding cost is 10 percent of the value of the monitors on hand. Each time they order it cost the company 150 dollars. Using the price break table below please decide illustrate what the optimal number to order would be for this company.

Yearly Demand 1300
order cost 150
percent holding cost 0.1
price break discount table
number price
0 to 100 $100.00
101-200 $99.75
201-250 $99.50
251-300 $99.35
301-350 $99.25
351 and up $99.20

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9309213

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