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Pronghorn Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $29.00 300-749 cases $27.58 750-1,499 cases
Pronghorn Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $29.00 300-749 cases $27.58 750-1,499 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 T1500 Total Cost X 1,264,625.6
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