Question: Demand estimates for a part your organization orders from a supplier is 12,000 units per year. There is a $25 fixed charge for placing an

Demand estimates for a part your organization

Demand estimates for a part your organization orders from a supplier is 12,000 units per year. There is a $25 fixed charge for placing an order and the warehouse has a $10 annual holding cost per unit. Part prices are based on the quantity purchased per the following price table: Order Quantity Unit Price 1 - 99 $2.50 100 - 299 $2.40 300 - 499 $2.30 500 or more $2.20 What order quantity will result in the lowest Total Annual Relevant Cost? Round up to nearest whole number. O 500 O 100 O 245 300

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