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

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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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. ...

#### Solution Summary

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