Question: Consider the all-units quantity discount schedule below. Price Bracket Quantity Ordered Price Per Unit Total Annual Cost (Optimal) 1 1-1999 $100 306,333 2 2000-3999 $90
Consider the all-units quantity discount schedule below.
| Price Bracket | Quantity Ordered | Price Per Unit | Total Annual Cost (Optimal) |
| 1 | 1-1999 | $100 | 306,333 |
| 2 | 2000-3999 | $90 | 314,289 |
| 3 | 4000-5999 | $80 | 321,113 |
| 4 | 6000-7999 | $70 | 326,814 |
| 5 | 8000+ | $60 | 350,754 |
Based on the Total Annual Costs given above (assume they are following the optimal policy for that price bracket), which Price Bracket provides the best balance between holding, ordering, and purchasing costs? Enter your choice (a number between 1 and 5 inclusive) into the blank below.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
