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Metlock Co. has the following quantity discount policy with its supplier. Quantity Price per Unit 1-499 units $16.00 500-999 units $15.70 1,000-1,999 units $15.10 2,000
Metlock Co. has the following quantity discount policy with its supplier.
Quantity Price per Unit
1-499 units $16.00
500-999 units $15.70
1,000-1,999 units $15.10
2,000 units + $14.30
The economic order quantity is 630 units and the annual usage is 16,394 units. The ordering cost (K) is $23 per order and the carrying cost of inventory (H) is $1.90 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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