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CU , Incorporated ( CUI ) produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q ,
CU Incorporated CUI produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are pricebreak and other data for the problem:
Price of copper $ per pound up to pounds
$ per pound for orders between and pounds
$ per pound for orders greater than pounds
Annual demand pounds per year
Holding cost percent per unit per year of the price of the copper
Ordering cost
Which quantity should be ordered?
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