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Brady Jones is a manager at a local store that sells computers. He needs to decide how many computers to order based on the quantity
Brady Jones is a manager at a local store that sells computers. He needs to decide how many computers to order based on the quantity discount schedule below. Annual demand is 150 computers, annual inventory carrying cost as a percent of unit cost is 18% (due to problems with obsolescence), and ordering costs are $20 per order.
Quantity Price per Unit ($)
1-25 | 900.00 |
26-50 | 895.00 |
51+ | 890.00 |
What is the Optimal Total Annual Cost?
A. 3
B. 6
C. 26
D. 51
What is the EOQ to purchase?
A. 99
B. 100
C. 399
D. 400
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