Assignment:
A firm buys a product using the price schedule given in the Table below. The company estimates holding costs at 10% of purchase price per year and ordering costs at 40 Lira per order. The firm's annual demand is 460 units.
| Order Size (Units) |
Price per unit (Lira) |
| 0-99 |
20 |
| 100-199 |
19.5 |
| 200-499 |
19 |
| 500 or more |
18.75 |
a. Determine how often the firm should order.
b. Determine the size of each order.
c. At what price should the firm order?
Provide complete and step by step solution for the question and show calculations and use formulas.