Consider the all-units quantity discount schedule below. The annual demand is 90,000 units, setup cost is $1000 per order, and annual holding cost is 30% of the unit cost. What is the optimal order quantity?
A) 1500
B) 1690
C) 1414
D) 1000
E) 1549

Question

Consider the all-units quantity discount schedule below. The annual demand is 90,000 units, setup cost is $1000 per order, and annual holding cost is 30% of the unit cost. What is the optimal order quantity? 
A) 1500 
B) 1690 
C) 1414 
D) 1000 
E) 1549

Quizplus · Accepted Answer

The Answer of Consider the all-units quantity discount schedule below. The annual demand is 90,000 units, setup cost is $1000 per order, and annual holding cost is 30% of the unit cost. What is the optimal order quantity? 
A) 1500 
B) 1690 
C) 1414 
D) 1000 
E) 1549

Consider the All-Units Quantity Discount Schedule Below