Problem: A local manufacturer uses 2,000 electronic switches boxes a year. Carrying costs are 23% of the cost of the switch per year, and ordering costs are $15 per order. The following price schedule applies. What is the optimal order quantity? Show all total costs calculations and explain your answer.
Number of Switches Price per Switch
0 - 99 $17.50
100 - 999 $17.00
1000 or more $16.50