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Suppose that you are a manager of a department, which uses 6000 boxes of rivets per year. The supplier quotes you a price of $10

Suppose that you are a manager of a department, which uses 6000 boxes of rivets per year. The supplier quotes you a price of $10 per box for an order size of 199 boxes or less, a price of $8 per box for orders of 200 to 999 boxes, and a price of $6 per box for an order of 1,000 or more boxes. You assign an annual holding cost of $2.5 per unit of inventory. Assume that ordering cost is $50/order. What is EOQ?

3000 units.

b. 2000 units.

c. 940 units.

d. 490 units.

e. 199 units.

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