How many phones should amazon order per replenishment

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Demand for phones at Amazon is 5,000 per month. The holding cost at Amazon is 25 percent and the company incurs a fixed cost of $500 for each order placed. The supplier offers an all unit quantity discount with a price of $200 per phone for all orders under 10,000, a price of $195 for all orders of 10,000 or more but under 20,000 and a pice of $190 for all orders of 20,000 or more. How many phones should Amazon order per replenishment?

Reference no: EM131114560

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