Problem 13-13 A mail-order house uses 16,150 boxes a year. Carryingcosts are 60 cents per box a year, and ordering costs are $96. Thefollowing price schedule applies. Number of Boxes Price per Box1,000 to 1,999 $1.25 2,000 to 4,999 1.20 5,000 to 9,999 1.15 10,000or more 1.10 a. Determine the optimal order quantity. (Round youranswer to the nearest whole number.) Optimal order quantity boxesb. Determine the number of orders per year. (Round your answer to 2decimal places.) Number of order per year
Expert Answer
Given that, Annual demand = 16150 Boxes
Ordering cost = $96
Holding cost = $0.60 per box per year
A)
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