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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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