Below are the prices your supplier will charge for an item based on the order quantity....

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Below are the prices your supplier will charge for an item based on the order quantity. The annual demand for this item is 10,000 units. The cost to process an order is $50 and the annual inventory holding cost is 30% of item price charged by the supplier. Enter the work and the answers in the shaded cells below. a) what is the optimal order quantity, given the below price breaks for purchasing the item? (round answer to integer] b) What price should the firm pay per unit? c) What is the total annual cost at the optimal order quantity (including purchase cost, ordering cost, and holding cost)? (Give in nearest cent, e.g, 1234.56) I Annual demand (D) Ordering cost (S) Annual holding cost (H) Range for O 1to 1499 1500-2999 3000 or more C $2.50 $2.40 $2.30 unit per order of cost of item H Annual Cost Purchas Ordering Holding Total (D/Q) S (Q/2)*H TC Adj Q DC Below are the prices your supplier will charge for an item based on the order quantity. The annual demand for this item is 10,000 units. The cost to process an order is $50 and the annual inventory holding cost is 30% of item price charged by the supplier. Enter the work and the answers in the shaded cells below. a) what is the optimal order quantity, given the below price breaks for purchasing the item? (round answer to integer] b) What price should the firm pay per unit? c) What is the total annual cost at the optimal order quantity (including purchase cost, ordering cost, and holding cost)? (Give in nearest cent, e.g, 1234.56) I Annual demand (D) Ordering cost (S) Annual holding cost (H) Range for O 1to 1499 1500-2999 3000 or more C $2.50 $2.40 $2.30 unit per order of cost of item H Annual Cost Purchas Ordering Holding Total (D/Q) S (Q/2)*H TC Adj Q DC

Answer rating: 100% (QA)

a The Economic Order Quantity EOQ formula is given by EOQ 2 D S H Where D Annual demand 10000 units ... View the full answer