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Annual demand for a special soldering material is 3000 lbs. The holding cost is 24% per year, based on the purchase price. Order cost is

Annual demand for a special soldering material is 3000 lbs. The holding cost is 24% per year, based on the purchase price. Order cost is $42 per order. The price schedule is as follows:

< 100 lbs.
$22 per pound
100 lbs. to 1000 lbs.
$21 per pound
More than 1000 lbs.
$20 per pound

Determine how much should be bought at a time.

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First we determine EOQ based on the highest price ie 22 EOQ 2CoDCh 2423000528 ... blur-text-image

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