Question: Answer the next three questions using the following information: The annual demand for an item is 1 0 , 0 0 0 units. The cost
Answer the next three questions using the following information:
The annual demand for an item is units. The cost to process an order is $ and the annual inventory holding cost is of item cost. The price structure is shown below.
Quantity Price
$ per unit
$ per unit
or more $ per unit
What is the optimal order quantity?
Question options:
A
B
C
D
E
Question point
What is the optimal order quantity of the second price class
Question options:
A
B
C
D
E
Question point
What is the optimal total cost?
Question options:
A
B
C
D
E
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