Question

The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual
inventory holding cost is 20% of item cost. What is the optimal order quantity, given the following
price breaks for purchasing the item? What price should the firm pay per unit? What is the total
annual cost at the optimal behavior?
191
Quantity
Price
1-9
$2.95 per unit
10 - 999
$2.50 per unit
1.000 - 4,999 52.30 per unit
5.000 or more $1.85 per unit​

Answer 1

Answer:

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Step-by-step explanation:

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