A Manager Has Just Received a Revised Price Schedule from a Vendor

Essay

A manager has just received a revised price schedule from a vendor. What order quantity should the manager use in order to minimize total costs? Annual demand is 120 units, ordering cost is $10, and annual carrying cost is $1 per unit.
$$\begin{array} { | c | c | } \hline \text { Quantity } & \text { Unit Price } \\\hline 1 - 59 & \$ 15 \\\hline 60 - 99 & \$ 14 \\\hline 100 \text { or more } & \$ 13 \\\hline\end{array}$$