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Exercise 16.24 Vaughn Co. has the following quantity discount policy with its supplier. Quantity Price per Unit 1-499 units $16.00 500-999 units $15.75 1,000-1,999 units
Exercise 16.24 Vaughn Co. has the following quantity discount policy with its supplier. Quantity Price per Unit 1-499 units $16.00 500-999 units $15.75 1,000-1,999 units $15.15 2,000 units + $14.35 The economic order quantity is 650 units and the annual usage is 23,942 units. The ordering cost (K) is $15 per order and the carrying cost of inventory (H) is $1.70 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) The most cost effective order quantity is Total Cost
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