What should the low-cost order quantity be


A supplier of hard drives for a local computer supply store establishes the following price schedule. Annual expected demand is 476 units. Given that ordering cost is $20 per order and carrying cost is $36 per unit per year, what should the low-cost order quantity be?

Quantity Price
1 - 20 $229
21 - 60 210
61 - 120 199
121- above 175

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Operation Management: What should the low-cost order quantity be
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