Given information

Number of converters 15.00

Ordering cost ($) 85.00
Holding cost ($) 2.10
Purchase price/ton 14.00
Coal tons/day/converter 8.00
Days/year 300.00

Calculation
Demand (tons/year) 36000.00
a, Optimal quantity (tons) 1707.13
b, Total minimum cost ($) 3584.97
c, Orders/year 21.09
Order cylcle time (days) 14.23
d,
Order quantity (tons) Price/ton ($) Holding cost Q Discount Q Total Cost
1000 14 2.1 1707.13 1707.13 $507,584.97
2000 12 1.8 1707.13 2000 $435,330.00
3000 10 1.5 1707.13 3000 $363,270.00
∴ 3000 units should be ordered
Optimal