Minimum-cost purchase quantity


Problem:

A foundry uses 3,600 tons of pig iron per year at a constant rate. The cost per ton delivered to the foundry is $145. It costs $92 to place an order and $18 per ton per year for storage.

Required:

Question: Find the minimum-cost purchase quantity.

Note: Show step by step solution and I also want complete calculation.

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Finance Basics: Minimum-cost purchase quantity
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