2024 – Use the following scenario to answer the next two questions Brady Jones is a manager at
Brady Jones – 2024
Use the following scenario to answer the next two questions:
Brady Jones is a manager at a local store that sells computers. He needs to decide how many computers to order based on the quantity discount schedule below. Annual demand is 3,000 computers, annual inventory carrying cost as a percent of unit cost is 20% (due to problems with obsolescence), and ordering costs are $10 per order.
Quantity Price per Unit ($)
1-25 475.00
26-50 445.00
51+ 420.00
What is the optimal total annual inventory cost?
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