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EOQ. A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 stones, and $10 per stone for lesser quantities. The jewelry firm operates 200 days a year. Daily demand is 200 stoned per day, and ordering cost are $48. If carrying cost are $2 per year per stone, find the order quantity that will minimize total cost.
What is the optimal order Quantity?
A what price per unit?
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