The optimal order quantity after change in pricing structure

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Bell computers purchases chips at $350 each. Holding cost is $33 per unit per year. Ordering cost is $121 per Oder and sales are steady at 395 per month.

1-99 units $350

100-199 units $325

200 or more units $300

A. The optimal order quantity after change in pricing structure is ____

The total annual cost for Bell to order purchase and hold the chips is ____

B. Optimal order quantity after 10% holding cost rather than fixed 33 holding cost

Total annual cost for bell to order purchase and hold the chips

Reference no: EM131645834

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