Question: Demand = 9,600 per year Order cost = 20 per order Holding cost = 25% of material cost per unit per year The supplier will

Demand = 9,600 per year Order cost = 20 per order

Demand = 9,600 per year Order cost = 20 per order Holding cost = 25% of material cost per unit per year The supplier will deliver the entire order quantity at the same time i.e. delivery size is equal to the order quantity. Range 1 - 1199 1200 - 4799 4800 or more Material cost per unit 9.00 8.50 8.00 The objective is to minimize annual total cost. Determine the best order quantity and associated annual total cost. (Show complete procedure)

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