Question: A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from Supplier A with the following

A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controllers can be purchased from Supplier A with the following price schedule. Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit.

Quantity Unit Price 1-199 $14.00 200-499 $13.80 500+ $13.60

1) What is the candidate order quantity at the unit price of $14.00?

2) What is the candidate order quantity at the unit price of $13.80?

3) What is the candidate order quantity at the unit price of $13.60?

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