Question: Samsung's mobile communications division uses 2 0 , 0 0 0 memory chips per month. Their trucking company charges Samsung $ 3 0 0 per
Samsung's mobile communications division uses
memory chips per month. Their trucking company charges Samsung $
per shipment, independent of the quantity purchased. The manufacturer of the memory chips offers an all unit quantity discount with a price of $
per memory chip for orders under
units $
per chip for orders between
and
units
including
and excluding
and $
per chip for orders
units and larger. Samsung incurs a holding cost rate of
per year. What is the optimal lot size and optimal total cost
TC
for Samsung?
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