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A small repair shop needs electric motors. The price that the supplier charges depends on the lot size, as follows: Quantity Price/unit 1-49 $35.00
A small repair shop needs electric motors. The price that the supplier charges depends on the lot size, as follows: Quantity Price/unit 1-49 $35.00 50-99 $34.00 100-499 $33.00 500 or more $30.00 The shop will order 600 motors for next year and that it will cost them $40 to place an order. Holding cost for a motor is $10 per year. Given the data, ordering units at a time minimizes the total cost.
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