1- What is the EOQ * that corresponds to each of the discounts?

2- What is the Total Annual Cost for each of the discounts with respect to their quantities?

3- What is the company's policy at the end? Set the optimal quantity to order with a discount and its reorder point. [Q *, ROP]

4- Discuss the results of this problem.

Problem . Discount Store stocks toy race cars. Recently, the store has been given a quantity discount schedule for these cars. This quantity schedule was shown in Table. Thus the normal cost for the toy race cars is $5. For orders between 1000 and 1999 units, the unit cost drops to $4.80; for orders of 2000 or more units, the unit cost is only $4.75. Furthermore, ordering cost is $49 per order, annual demand is $5000 race ca rs, and inventory carrying charge, as a percent of cost is %20. What order quantity will minimize the total inventory cost