As an inventory manager, you must decide on the order quantity for an item. Its annual...

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As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 1,300 units. Ordering costs are $55 each time an order is placed, and the holding cost is 32 percent of the per-unit price. Your supplier provided the following price schedule. Quantity Price per Unit 1-199 $10.27 200-499 $ 10.03 500 or more $9.75 What is the optimal order quantity policy? (round to the nearest integer) As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 1,300 units. Ordering costs are $55 each time an order is placed, and the holding cost is 32 percent of the per-unit price. Your supplier provided the following price schedule. Quantity Price per Unit 1-199 $10.27 200-499 $ 10.03 500 or more $9.75 What is the optimal order quantity policy? (round to the nearest integer)

Answer rating: 100% (QA)

To determine the optimal order quantity policy you can use the Economic Order Quantity EOQ formula T... View the full answer