What is the optimal order quantity


Assignment:

A mail-order house uses 15,130 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. What is the optimal order quantity? Number of orders per year?

Number of Boxes Price per Box
1,000 to 1,999 $1.25                
2,000 to 4,999 1.20                
5,000 to 9,999 1.15                
10,000 or more

1.10

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Financial Management: What is the optimal order quantity
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