The maintenance department of a large hospital uses about 816 cases of liquid cleanserannually. Ordering costs are $12, carrying costs are $4 per case a year, and the new priceschedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 caseswill cost $18 per case, 80 to 99 cases will cost $17 per case, and larger orders will cost $16per case. Determine the optimal order quantity and the total cost.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The maintenance department of a large hospital uses about 816 cases of liquid cleanser
annually. Ordering costs are $12, carrying costs are $4 per case a year, and the new price
schedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 cases
will cost $18 per case, 80 to 99 cases will cost $17 per case, and larger orders will cost $16
per case. Determine the optimal order quantity and the total cost.

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