Determine the optimal quantity when annual demand is 7,000, annual carrying cost is 23%, order cost is $13, and cost per unit for 0-199 units is $8, 200-499 is $7, and 500 up is $6

Determine the optimal quantity when annual demand is 7,000, annual carrying cost is 23%, order cost is $13, and cost per unit for 0-199 units is $8, 200-499 is $7, and 500 up is $6

Solution

Solution :

Optimal Order Quantity : 337units

https://d2vlcm61l7u1fs.cloudfront.net/media%2F28f%2F28f32212-aeb2-4af3-a5df-f38cca54f9e0%2Fphp2oI1wD.png