Problem:
County Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule.
| Qty |
Price |
| 0-9999 |
$ 3.40 |
| 10,000-19,999 |
$ 3.20 |
| 20,000-29,999 |
$ 3.00 |
| 30,000-39,999 |
$ 2.80 |
| 40,000-49,999 |
$ 2.60 |
| 50,000+ |
$ 2.40 |
Required:
Question 1) What is best order size for syringes?
Solve the problem and show all work.