A company will begin stocking remote control devices. Expected monthly demand is 750 units. The controllers will be purchased from RCD supplier offering price breaks for quantities. RCD’s price list is as follows:
Quantity Range
Unit Price
0 to 249
17.00
250 to 499
16.60
500 to ∞
16.10
Given that ordering cost is $30 and annual holding cost is 0.25 of unit price per unit, provide the following results:
• What is the feasible quantity? [a]
o What is the total annual ordering cost at this quantity? $[b]
o What is the total annual holding cost at this quantity? $[c]
o
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