Question: In the previous problem, suppose that the cost per order is $1, and the monthly demand is 50 thermometers. What is the optimal order quantity?

In the previous problem, suppose that the cost per order is $1, and the monthly demand is 50 thermometers. What is the optimal order quantity? What is the smallest discount the supplier could offer that would still be accepted by the hospital?

Data from Previous Problem:

A hospital orders its thermometers from a hospital supply firm. The cost per thermometer depends on the order quantity Q. The annual holding cost is 25% of the purchasing cost. Let Q₈₀ be the optimal EOQ order quantity if the cost per thermometer is $0.80, and let Q₇₉ be defined similarly if the cost per thermometer is $0.79.

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