A watch repair shop buys batteries for a variety of, Operation Management

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A watch repair shop buys batteries for a variety of

A watch repair shop buys batteries for a variety of products. The most frequent battery purchase is for a Y300 with demand of 3,000 per year. The order cost is $15 per order, and the holding cost is $0.50 per battery. Given the following price schedule, calculate the optimal order quantity.

Number of Batteries Price

1-250 $6.00

250-499 $5.50

500-999 $5.00

1000 or more $4.75

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