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.
$$\begin{array} { | c | c | }
\hline \text { Quantity } & \text { Unit Price } \
\hline 1 - 59 & \$ 15 \
\hline 60 - 99 & \$ 14 \
\hline 100 \text { or more } & \$ 13 \
\hline
\end{array}$$

Question

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.
 $$\begin{array} { | c | c | } 
\hline \text { Quantity } & \text { Unit Price } \
\hline 1 - 59 & \$ 15 \
\hline 60 - 99 & \$ 14 \
\hline 100 \text { or more } & \$ 13 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of 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.
 $$\begin{array} { | c | c | } 
\hline \text { Quantity } & \text { Unit Price } \
\hline 1 - 59 & \$ 15 \
\hline 60 - 99 & \$ 14 \
\hline 100 \text { or more } & \$ 13 \
\hline
\end{array}$$

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