Question: B). As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 679 units. Ordering costs are $7

B). As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 679 units. Ordering costs are $7 each time an order is placed, and the holding cost is 10% of the unit cost. Your supplier provided the following price schedule.

Quantity

Price per Unit

1 - 100

$5.65

101 - 350

$4.95

351 or more

$4.55

What ordering-quantity policy do you recommend? (10 marks)

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