Bold Vision, Inc. (from Problem 1), must purchase toner from a local supplier. The company does not wish to carry raw material inventory and therefore purchases only enough toner to satisfy the demand of each individual batch of cartridges. Each toner cartridge requires one pound of toner. The raw material supplier offers Bold Vision a purchase discount of $2.00 per pound if the company orders at least 2,000 pounds at a time. Should Bold Vision accept this offer and alter its toner purchase quantity?

Data from in problem 1

Bold Vision, Inc., makes laser printer and photocopier toner cartridges. The demand rate is 625 EP cartridges per week. The production rate is 1,736 EP cartridges per week, and the setup cost is $100. The value of inventory is $130 per unit, and the holding cost is 20 percent of the inventory value. Bold Vision operates 52 weeks a year. What is the economic production lot size?