Effective considering the total cost of ordering

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Question: UC parking services is looking at price discounts for plastic tag holders parking vouchers for guests. If they know that the annual demand is 36,000 and that the order costs for this with the UC logo on is $25 and there's a 20% holding costs to keep track of these in inventory annually. The regular purchase price is $0.85 and the discounted price of $0.82 for orders of 6,000 and above. I should use which order quantity to be the most cost effective considering the total cost of ordering, holding and materials?

Reference no: EM133608544

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Effective considering the total cost of ordering : should use which order quantity to be the most cost effective considering the total cost of ordering, holding and materials
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