Question: Example 7: A supplier for Lower Florida Keys Health System has introduced all- units quantity discounts to encourage larger order quantities of a special catheter.

Example 7: A supplier for Lower Florida Keys

Example 7: A supplier for Lower Florida Keys Health System has introduced all- units quantity discounts to encourage larger order quantities of a special catheter. The price schedule is: Price Per Unit Units Ordered 0-299 $60.00 $58.80 300-499 500 or more $57.00 The firm estimates that its annual demand for this item is 936 units, its setup cost is $45 per order, and its annual holding cost is 25% of the catheter's unit price. a. What is the best order size? b. What is the total cost

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