Question: Solve the question Step by Step. The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are D =

Solve the question Step by Step.

The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are D = 600 units, S = $20/order and I = 30% of item price. Price is established by the following Quantity discount schedule.

Range 1

Range 2

Range 3

Minimum quantity

1

50

250

Quantity

1 to 49

50 to 249

250 and up

Price

$5.00 per unit

$4.50 per unit

$4.10 per unit

Question 8 options:

What is the actual order quantity for Range 1?

What is the Total unit cost for Range 3?

What should the order quantity be in order to minimize the total annual cost?

What is the holding cost for Range 2?

What is the Total unit cost for Range 2?

What is the actual order quantity for Range 2?

What is the calculated order quantity (Q*) for Range 1?

What is the calculated order quantity (Q*) for Range 3?

What is the ordering cost for Range 3?

What is the calculated order quantity (Q*) for Range 2?

What is the Total Inventory cost for Range 3?

What is the ordering cost for Range 2?

123456789101112

What is the actual order quantity for Range 3?

What is the holding cost for Range 3?

What is the Total Inventory cost for Range 2?
1.

126
2.

133
3.

140
4.

250
5.

$90
6.

$153.75
7.

$48
8.

$2,700
9.

$2,460
10.

$2,880
11.

$2,661.75
12.

None

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