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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, to meet the annual
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 price-break and other data for the problem: Price of copper Annual demand Holding cost Ordering cost $0.82 per pound up to 2,999 pounds $0.81 per pound for orders between 3,000 and 5,999 pounds $0.79 per pound for orders 6,000 pounds or greater 50,000 pounds per year 20 percent per unit per year of the price of the copper $30 Which quantity should be ordered? Quantity (Click to select) pounds
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