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# determine the order quantity that will result in minimum annual total cost (show complete procedure)

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Demand = 4,800 per year
Order cost = 40 per order
Holding cost = 25% of acquisition cost per unit per year
Delivery size is equal to the order quantity.

Range Cost per unit
1 - 399 10.00
400 - 1199 9.00
1200 - 4799 8.50
4800 and more 8.00

Using appropriate model, determine the order quantity that will result in minimum annual total cost (show complete procedure).

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This guide determines the order quantity that will result in minimum annual total cost (show complete procedure).

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Demand = 4,800 per year
Order cost = 40 per order
Holding cost = 25% of acquisition cost per unit per year
Delivery size is equal to the order quantity. ...

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• B. Sc., University of Nigeria
• M. Sc., London South Bank University
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