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Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume

Dave's Sporting Goods sells Mountain Mouse freeze-dried meals. Dave's uses a continuous review system to manage meal inventories. Suppose Mountain Mouse offers the following volume discounts to its customers:

1750

meals:

$6.75

per meal

751

or more meals:

$4.75

per meal

Annual demand is

1,450

meals, and the cost to place an order is

$12.

Suppose the holding cost is

$5.00

per meal per year. How many meals should Dave's order at a time?

Part 2

Dave's Sporting Goods should order

enter your response here

meals at a time to take advantage of the lower cost per unit.

(Enter

your response rounded to the nearest whole

number.)

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