Brass Department Store stocks toy cars. Recently, the store was given a quantity discount schedule for...

Brass Department Store stocks toy cars. Recently, the store was given a quantity discount schedule for the cars, as shown in Table below. Thus, the normal cost for the cars is $5. For orders between 1,000 and 1,999 units, the unit cost is $4.80, and for orders of 2,000 or more units, the unit cost is $4.75. Furthermore, the ordering cost is $49 per order, the annual demand is 5,000 race cars, and the inventory carrying charge as a percentage of cost is 20%. What order quantity will minimize the total cost?

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orchestra answered 1 year ago

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