Exercise 16.24
Tamarisk Co. has the following quantity discount policy with its supplier.
\begin{tabular}{|l|l|}
\hline
Quantity & Price per Unit \\
\hline
1-499 units & $16.00 \\
500-999 units & $15.75 \\
1,000-1,999 units & $15.20 \\
2,000 units + & $14.25 \\
\hline
\end{tabular}
The economic order quantity is 760 units and the annual usage is 24,942 units. The ordering cost (K) is $22 per order and the carrying cost of inventory (H) is $1.90 per unit. Determine the most cost effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.)
The most cost effective order quantity is
Total Cost