A manufacturing company has been notified by one of its suppliers that it can receive a discount on a common standard part it uses to produce its products. The parts would be delivered gradually. They have collected the following information regarding the part: D Annual demand = 1000 units 7 C. Annual carrying cost = .2(AC) Co Ordering cost = $2 P Supply rate (p) = 60 d Usage rate (d) = 20 Range of Order Quantities 1-100 101 – 200 201 + Acquisition Cost Per Unit $2.50 $2.30 $2.20 What order quantity would you recommended in order to minimize
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