Essay
The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are D = 600 units, S = $20/order and I = 30% of item price. Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost?
Correct Answer:
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STEP 1: EOQ at $6.00 = 115 → infeasible
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