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PT ABC has the annual demand of 150.000 kgs. The purchase price is $2.0/kg. However, the shipping cost exhibits a quantity discount model. The holding

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PT ABC has the annual demand of 150.000 kgs. The purchase price is $2.0/kg. However, the shipping cost exhibits a quantity discount model. The holding cost per year is then 15% of the sum of the purchase and shipping cost. The administrative costs of placing an order = $50/order. Table 2. Shipping Cost Price as Quantity Discount Model Shipping Quantity (kgs) Cost/kg 8,000 -

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