# Inventory Control for Quantitative Analysis

*label*Statistics

*timer*Asked: Apr 16th, 2015

**Question description**

R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. How many units should R. C. order to minimize his total annual inventory cost? (Round your answer to the nearest unit.)

Must have the following with the answer:

a.) write the equation(s) used, b.) the numerical values for each variable in the equation, c.) the numerical values for the variables plugged into the equation(s), d.) the final answer.