Question 15

An electronic store sells 1100 model X computers annually. Annual carrying cost is 12% of the unit cost. Urcler cost is $80. The lead time for receiving computers is 5 days. The supplier offers discounted prices for the store based on order quantity as given below: Order quantity (Q) Unit Price ('5) Q C 50 440 50 = 100 390 Give your answers to two decimal places. a. Find the minimum cost order quantityI at price level 5400 b. Find the optimal order quantityr c. Find the annual ordering cost for optimal order quantityI :1. Find the annual holding cost for optimal order quantity