Question: Brady Jones is a manager at a local store that sells computers. He needs to decide how many computers to order based on the quantity discount schedule below. Annual demand is 9,000 computers, annual inventory carrying cost as a percent of unit cost is 65% (due to problems with obsolescence), and ordering costs are $45 per order.
Quantity Price per Unit ($)
1-199 1,300.00
200-499 1,297.00
500+ 1,295.00
What is Optimal Total Annual Cost?
What is the EOQ to purchase? Round your final answer to the nearest whole number.