How much be ordered each time to minimize total cost


The They Hatch'em, You Scratch'em, We Catch'e, Pet products company has an annual demand of 2,000 flea collars. Each collar costs $1.75 in quantities of less than 700 and $1.35 in quantities of 700 of more. Ordering costs are $12.00 per order. Holding costs of inventory are 24% of the purchase price per year. How much should be ordered each time to minimize total cost?

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Operation Management: How much be ordered each time to minimize total cost
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