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If annual demand = 2500, order cost = $50, annual holding cost rate = 15%, and the purchase price = $120 for orders of less
If annual demand = 2500, order cost = $50, annual holding cost rate = 15%, and the purchase price = $120 for orders of less than 10,000 units, or $105 for orders of 10,000 units or more, should you take the discount? Also, what is the minimum total cost? ? a. No--$116,280 b. Yes--$208.477 c. No--$341,263 d. Yes--$302,120
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