Imports second-hand bags from south korea

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Reference no: EM131800888

XY Company imports second-hand bags from South Korea to re-sell them in the U.S. The annual demand of the product is 2500 units. The cost related to placing an order, including the customs procedures, is $250. The cost of keeping the inventory has been estimated as of 20% of the price payed per unit.

The manufacturer offers the following data:

Quantity	Price per Unit
1-199	$10.00
200-499	9.80
500-999	9.65
1,000-4,999	9.60
5,000 or more	9.55

Make an analysis to the owner of XY Company about the amount of hand-bags he will need in order to minimize the total annual cost of acquiring them.

Reference no: EM131800888

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