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Inflationary pricing continues to soar. Bolton Electric want's to determine the quantity that will help them to receive the lowest total cost for the supplies
Inflationary pricing continues to soar. Bolton Electric want's to determine the quantity that will help them to receive the lowest total cost for the supplies they purchase. Bolton Electric uses 1,000 light bulbs per year. Light bulbs are priced with the following pricing tiers: 1-49 = $25.00 each, 50-99 = $23.75 each, 100 - 149 = #23.00 each, and 150+ = $22.25 each. It costs Bolton Electric $75 to receive an order and $50 to carry/hold it on an annual basis. Given this info, how many light bulbs should Bolton Electric buy each time? Bolton Electric should buy the EOQ 100 light bulbs 50 light bulbs
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