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Pronghorn Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1299 cases $29.00 300749 cases $27.58 7501,499 cases
Pronghorn Ltd. Has the following quantity discount policy with its supplier Evanora Inc.
Quantity | Price per Case | |
1299 cases | $29.00 | |
300749 cases | $27.58 | |
7501,499 cases | $26.18 | |
1,500 + cases | $25.20 |
The economic order quantity is 138 cases and the annual usage is 38,088 cases. The ordering cost (K) is $4 per order and the carrying cost of inventory (H) is $16 per unit. Determine the most cost-effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.)
Most cost effective order quantity = | ||
Total Cost = | $ |
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