Dominick’s supermarket chain sells Nut Flakes, a popular cereal manufactured by the Tastee cereal company. Demand for Nut Flakes is 1,000 boxes per week. Dominick’s has an annual holding cost of 25 percent and incurs a fixed trucking cost of $200 for each replenishment order it places with Tastee. Given that Tastee normally charges $2 per box of Nut Flakes, how much should Dominick’s order in each replenishment lot?

Tastee runs a trade promotion for a month, lowering the price of Nut Flakes to $1.80. How much should Dominick’s order, given the short-term price reduction?