Question

A mail- order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and order-ing costs are $ 96. The following price schedule applies. Determine
a. The optimal order quantity.
b. The number of orders per year.
Number of Boxes Price per Box
1,000 to 1,999 ..........$ 1.25
2,000 to 4,999 .......... 1.20
5,000 to 9,999 .......... 1.15
10,000 or more .......... 1.10



$1.99
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  • CreatedDecember 30, 2014
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