A manager has just received a revised price schedule from a vendor: $$\begin{array} { l l }
\text { Quantity } & \text { Unit Price } \
\hline 1 \text { to } 39 \text { units } & \$ 14 \
40 \text { to } 59 \text { units } & \$ 13 \
60 \text { to } 89 \text { units } & \$ 12 \
90 \text { or more units } & \$ 11
\end{array}$$ What order quantity should the manager use in order to minimize total costs?Annual demand is 120 units, ordering cost is $8, and annual carrying cost is $1 per unit.

Question

A manager has just received a revised price schedule from a vendor: $$\begin{array} { l l } 
\text { Quantity } & \text { Unit Price } \
\hline 1 \text { to } 39 \text { units } & \$ 14 \
40 \text { to } 59 \text { units } & \$ 13 \
60 \text { to } 89 \text { units } & \$ 12 \
90 \text { or more units } & \$ 11
\end{array}$$ What order quantity should the manager use in order to minimize total costs?Annual demand is 120 units, ordering cost is $8, and annual carrying cost is $1 per unit.

Quizplus · Accepted Answer

The Answer of A manager has just received a revised price schedule from a vendor: $$\begin{array} { l l } 
\text { Quantity } & \text { Unit Price } \
\hline 1 \text { to } 39 \text { units } & \$ 14 \
40 \text { to } 59 \text { units } & \$ 13 \
60 \text { to } 89 \text { units } & \$ 12 \
90 \text { or more units } & \$ 11
\end{array}$$ What order quantity should the manager use in order to minimize total costs?Annual demand is 120 units, ordering cost is $8, and annual carrying cost is $1 per unit.

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