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All-Units Discounts

Demand for an item is 19866 units per year. Each order placed costs $106. The annual carrying cost percentage per item in inventory is 19% each. The variable purchase cost is $2.50 per unit if less than 3000 units will be ordered, $2.40 from 3000 units upto (but not including 4000 units), and $2.30 for at least 4000 units. These are all-units discounts.

Part a: What is the optimal order quantity Q* for the unit cost of $2.30? Please round to a whole number.

Part b: Is this quantity realizable/feasible? Please answer ‘Yes’ or ‘No’

Part c:What is the optimal realizable/feasible total annual cost at a unit cost of $2.30?

Part d: What is the optimal order quantity Q* for the unit cost of $2.40? Please round to a whole number.

Part e: Is this quantity realizable/feasible?Please answer ‘Yes’ or ‘No’.

Part f: What is the optimal realizable/feasible total annual cost at a unit cost of $2.40?

Part g: What is the optimal order quantity Q* for the unit cost of $2.50? Please round to a whole number.

Part h: Is this quantity realizable/feasible?Please answer ‘Yes’ or ‘No’.

Part i: What is the optimal realizable/feasible total annual cost at a unit cost of $2.50?