Question: 3. A company is trying to optimize its inventory cost. Its conditions are: Annual Demand = 1,500 dozens/year, Ordering cost = $35/order, Holding cost

3. A company is trying to optimize its inventory cost. Its conditions are: Annual Demand = 1,500 dozens/year, Ordering cost = $35/order, Holding cost = 40% The supplier is offering the following quantity discount schedule. quantity Price 1-19 $21.95 20-99 $19.95 100-199 $18.95 200+ $17.95 a) Calculate EOQ for each price. b) At what condition (price and quantity) does the match happen (feasible)? c) At what condition (price and quantity), should they operate at? EOQ

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