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You manage a process that orders important materials from a supplier. You have to decide how much to order from the supplier. You order the same amount every time when it comes time to order. Important data are below: You use 281,141 units per year of this material. Your supplier charges you 1,473 per order for shipping and handling, no matter how much you order. Each unit you order costs 1,377 Your unit has no other projects you could invest in, so your only other option for using your budgeted money is to keep it in a bank account that earns 0.016 interest per year. How much should you order each time you submit an order?

Operation Management, Management Studies

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