Prentice Hall wants to reduce a large stock of Quantitative Analysis books from their warehouse. The annual demand rate is 400 books, the ordering cost is $20, and the annual holding cost is $3 per textbook. They have offered the JU Bookstore a quantity discount pricing schedule, with a price of $75 for orders of up to 99 books, $70 for orders of 100 to 299 books, and $68 for orders of 300 books or more. Perform a Quantity Discount analysis.
➢ 3a) What ORDER SIZE will minimize total cost?
➢ 3b) Was the price discount was a factor in the optimal order size? YES or NO.

Answer rating: 100% (QA)

3a To find the order size that will minimize the total cost we can use the Economic O... View the full answer