Question: (Study guide - final exam] The annual demand for an item is 100 units. The cost to process an order is $1 and the annual

(Study guide - final exam] The annual demand for an item is 100 units. The cost to process an order is $1 and the annual inventory holding cost is 1% of item cost. (a) What is the optimal order quantity for range 1? Quantity Price $2.95 per $2.30 per Range 1: 1-9 unit Range 2: 10 - $2.50 per 999 unit Range 3: 1.000 - 4,999 unit Range 4: 5.000 or more unit $1.85 per 1 Needs to be discarded. 9 First, all Eos need to be determined

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