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Question

A mail-order house uses 17,750 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are

$96. The following price schedule applies.


 

Number of BoxesPrice per Box1,000 to 1,999$1.25               2,000 to 4,9991.20               5,000 to 9,9991.15               10,000 or more1.10               


 

a.Determine the optimal order quantity. (Round your answer to the nearest whole number.)


 

  Optimal order quantity boxes 


 

b.Determine the number of orders per year. (Round your answer to 2 decimal places.)


 

  Number of order per year  

Top Answer

a. The economic order quantity... View the full answer

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