Calculate the optimal order quantity

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A watch repair shop buys batteries for a variety of products. The most frequent battery purchase is for a Y300 with demand of 3,000 per year. The order cost is $15 per order, and the holding cost is $0.50 per battery. Given the following price schedule, calculate the optimal order quantity.

Number of Batteries                    Price

1-250                                                     $6.00

250-499                                                $5.50

500-999                                                $5.00

 

1000 or more                                     $4.75

Reference no: EM13780210

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