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Sage Co. has the following quantity discount policy with its supplier. Quantity Price per Unit 1499 units $15.00 500999 units $14.80 1,0001,999 units $14.25 2,000
Sage Co. has the following quantity discount policy with its supplier.
Quantity | Price per Unit | |
1499 units | $15.00 | |
500999 units | $14.80 | |
1,0001,999 units | $14.25 | |
2,000 units + | $13.45 |
The economic order quantity is 970 units and the annual usage is 21,562 units. The ordering cost (K) is $24 per order and the carrying cost of inventory (H) is $1.10 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 = | ||
Total Cost = |
Please help me with this question, thank you very much :)
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