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Category Order size Unit Cost 1 0 - 3999 $0.05 2. 4000 - 7999 $0.04 3 8000 & over $0.03 Ordering cost = $12 Annual
Category Order size Unit Cost 1 0 - 3999 $0.05 2. 4000 - 7999 $0.04 3 8000 & over $0.03 Ordering cost = $12 Annual holding cost = 20% of unit cost (hint: carry decimal places) Annual Demand = 12,000 units Using the EOQ formula, what is optimal order quantity in category 3? 6929 a. b. 12000 6000 C. d. 8000
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