3.) reconsider the retailer from problem 2.) (with the same demand and set up cost and withholding costs equal to 20% of the purchase price). Assume that quantity discounts are available as in the table below:

Determine the Effective Q and calculate TC, the total coat, for each prossibility. To minimize cost, how many units should the retailer order?________

(QUESTION 2: demand - 900 products per month, order setup cost - $200, lead time of 4 days and the annual holding cost is $3 per unit)

i just posted a picture of question 2

3) (3 points) Reconsider the retailer from problem 2) (with the same demand and setup cost and with holding cost equal to 20% of the purchase price). Assume that quantity discounts are available as in the table below: Purchase Effective Order Quantity Price Q* TC Q Q 20000 $14.00 Determine the Effective Q and calculate TC, the total cost, for each possibility. To minimize costs, how many units should the retailer order? 2) (5 points) A retailer consistently sells about 900 products per month. Each order has a setup cost of $200, a lead time of 4 days and the annual holding cost is $3 per unit. Calculate: a) The EOQ, Q*; b) The inventory cost, IC; c) The average inventory level; d) The number of orders per year; e) and the ROP, assuming the retailer is open 300 days per year. f) In a sentence at the bottom of the page that convinces me you understand what all the results below mean, describe what the optimal inventory control policy is for this product; i.e., answer the standard inventory question - How much, and when? using the results from a) through e)