Question

1. Sony Electronics hires Mr. Mark Gunther of Brockhart & Kaitlin in order to manage inventory operations. Sony has a supplier that produces electronic circuit boards for its TV sets. Sony currently pays $200 for each circuit card, and consumes an estimated 30,000 cards in a year. It costs Sony $600 to place an order to its supplier. The unit inventory holding cost is estimated to be equal to 30% of the purchasing price.

The supplier Sony Electronics uses (in Problem 1 of this homework) produces a new and updated price list based on increased order quantities. The following list shows the new prices:

Order Quantity	Unit Price per Circuit Card
1-499	$300.00
500 - 999	$297.00
1000 - 1499	$294.00
1500 - 1999	$291.00
2000+	$290.00

What is the best order quantity choice in the feasible region corresponding to different  unit price?

$300 --

$297 --

$294 --

$291 --

$290 --

Answer 1