Given the price list below, determine the order size that will minimize the total of annual holding, ordering, and purchasing costs. Annual demand is 500 units, ordering cost is $25, and holding cost is $10 per unit a year.
Quantity Unit Price
1 to 20 $180
21 to 30 178
31 to 40 175
41 or more 174
a. 18
b. 50
c. 27
d. 86
Answers: 1
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