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A particular raw material is available to a company at three different prices, depending on the size of the order
Less than 100 pounds $ 25 per pound
100 pounds to 2,999 pounds $ 24 per pound
3,000 pounds or more $ 23 per pound
The cost to place an order is $60. Annual demand is 3,100 units. Holding (or carrying) cost is 20 percent of the material price.
What is the economic order quantity to buy each time, and its total cost? (Round your answers to the nearest whole number.)
Economic order quantity _____ pounds
Total cost $ _______
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Calculate the average number of defects per basket
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