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Novak Co. has the following quantity discount policy with its supplier. Quantity Price per Unit $16.00 1-499 units 500-999 units $15.80 1,000-1.999 units $15.25 2,000
Novak Co. has the following quantity discount policy with its supplier. Quantity Price per Unit $16.00 1-499 units 500-999 units $15.80 1,000-1.999 units $15.25 2,000 units + $14.50 The economic order quantity is 910 units and the annual usage is 35,490 units. The ordering cost (K) is $21 per order and the carrying cost of inventory (H) is $1.80 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, eg. 125.74.) The most cost effective order quantity is Total Cost
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