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A supplier for St. LeRoy Hospital has introduced quantity discounts to encourage larger order quantities of a special catheter. The price schedule is Order quantity 0 to 299 300 to 499 500 more Price per unit $60.00 $58.80 $57.00 The hospital estimates that its annual demand for this item is 936 units, its ordering cost is $45.00 per order, and its annual holding cost is 25 percent of the catheter's unit price. What quantity of this catheter should the hospital order to minimize total costs?

A supplier for St. LeRoy Hospital has introduced quantity discounts to encourage larger order quantities of a special catheter. The price schedule is Order quantity 0 to 299 300 to 499 500 more Price per unit $60.00 $58.80 $57.00 The hospital estimates that its annual demand for this item is 936 units, its ordering cost is $45.00 per order, and its annual holding cost is 25 percent of the catheter's unit price. What quantity of this catheter should the hospital order to minimize total costs?

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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A supplier for St. LeRoy Hospital has introduced quantity discounts to encourage larger order quantities of a special catheter. The price schedule is Order quantity 0 to 299 300 to 499 500 more Price per unit $60.00 $58.80 $57.00 The hospital estimates that its annual demand for this item is 936 units, its ordering cost is $45.00 per order, and its annual holding cost is 25 percent of the catheter's unit price. What quantity of this catheter should the hospital order to minimize total costs?
Transcribed Image Text:A supplier for St. LeRoy Hospital has introduced quantity discounts to encourage larger order quantities of a special catheter. The price schedule is Order quantity 0 to 299 300 to 499 500 more Price per unit $60.00 $58.80 $57.00 The hospital estimates that its annual demand for this item is 936 units, its ordering cost is $45.00 per order, and its annual holding cost is 25 percent of the catheter's unit price. What quantity of this catheter should the hospital order to minimize total costs?
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