Question: Question 5: A manager has just received a revised price schedule from a vendor shown in table below: Quantity Unit Price 1 to 49 units
Question 5: A manager has just received a revised price schedule from a vendor shown in table below: Quantity Unit Price 1 to 49 units $14 50 to 99 units $13 100 to 149 units $12 150 to 199 units $11 200 to 249 units $ 10.5 250 to 299 units $ 10.25 300 and above $10 units What order quantity should the manager use in order to minimize total costs? Annual demand is 1200 units, ordering cost is $12, and annual carrying cost is $2 per unit. (15 points)
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