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Oriole Co. has the following quantity discount policy with its supplier. Quantity Price per Unit 1499 units $ 16.00 500999 units $ 15.75 1,0001,999 units

Oriole Co. has the following quantity discount policy with its supplier.

Quantity Price per Unit
1499 units $ 16.00
500999 units $ 15.75
1,0001,999 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 2000
Total Cost

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