The annual demand ordering cost and the annual inventory, Ask an Expert

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The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are D = 600 units, S = $20/order and I = 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.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92749668

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