Using table # 1 calculate the total cost of the inventory (TC) if the price of the supply is $18.50 (as seen on the 2nd last row of the table).
Table 1: For Questions 1-3
EOQ with Quantity Discounts
Warehouse storage cost (I) = 0.55
Ordering cost (S) = $11.60
Annual demand (D) = 19,200
Discount Quantity
0-700
701-1,200
Over 1,200
Price
$19.60
$18.50
$17.70
$340,236.98
$359,084.06
$321,507.82
$319,914.78
$300,717.12