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(O Minimum Ap6ci Q.2 (6 marks) (CLO 2) Amna solle beauty supplies Her annual demand for a particutar akin spackle is 15,000 units. The cost of placing an order is 345, while the holding cost per unit por year is 1a
percent of the cost. This item currently costs $15 if the order quantity is less than 1500. For orders of 1501 units up to 10,000 units the cost falls to $12 and for orders of 10,001 or greater, the cost falls to $11. (a) To minimize total cost, how many units should Amna order each time she places an order? What is the minimum total cost? (b)
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Answer #1

Soluton a) holdia cost per uit 2 Ther erre holding cos tja egualtol2y Uen order cost $ HS (jlven Anuat demand - 5000 CalculalNow calculate the minimum otal Cost 266 Therefore he mintmum tota cot ere ore

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