Question: Assignment 9: A raw material is consumed at a rate of 180,000 kilos per year. The fixed cost of placing an order for this item

Assignment 9: A raw material is consumed at a

Assignment 9: A raw material is consumed at a rate of 180,000 kilos per year. The fixed cost of placing an order for this item is $60 per order. The annual inventory holding costs are estimated at 20 percent of the investment in inventory. No shortages are permitted. The price paid for the material is a function of the amount ordered according to following schedule ( An incremental discount schedule ) What is the minimum cost order quantity? . Sketch the graph of the total annual cost verus the quantity ordered

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