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B. INVENTORY MANAGEMENT - QUANTITY DISCOUNT IGOT7 Industries, a manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists
B. INVENTORY MANAGEMENT - QUANTITY DISCOUNT
IGOT7 Industries, a manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, RM5 each; 1,000 to 3,999, RM4.95 each; 4,000 to 5,999, RM4.90 each; and 6,000 or more, RM4.85 each. Ordering costs are RM50, annual carrying costs per unit are 40% of purchase cost, and annual usage is 4,900 pulleys. Determine an order quantity that will minimize the total cost.
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