Question: In the quantity discount model in Example 13.2, the minimum total annual cost in region 3 is clearly the best. Evidently, the larger unit purchase

In the quantity discount model in Example 13.2, the minimum total annual cost in region 3 is clearly the best. Evidently, the larger unit purchase costs in the other two regions make these two regions unattractive.

Could region 1 ever be best? What about region 2? To answer these questions, assume that there is no price break at all. Specifically, assume that the unit purchase cost is always $26. What is the optimal order quantity with this assumption? How does this help answer the preceding questions?

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