A B C D E for the bands on their paper masks. McMasker's is buying 720,000 sets of elastic bands per month. Their fixed costs are $40,000 for each order. Each set cost $0.50 and has an anual holding cost of 20%. Elastic Band is offering a 10% per unit all unit discount with a minimum order quantitiy, MOQ, of 3,000,000. How does the discount impact inventory cost? How does the discount impact set up (Fixed) costs The elastic band company was a bottleneck in the McMasker's paper masks minicase. With the discount offer, who benefits more? Explain. Annual demand, D Unit cost, C Set up cost per order, S Annual \%, h Annual holding cost per unit Minimum Order Qtty, MOQ EOQ,Q 25 No discount with discount Must order at least MOQ to get discount =MAX(C23,C24) Formula chooses the larger of the MOQ or EOQ \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hline & A & B & C & D & E & F & G & H & I & J & K \\ \hline 17 & & No discount & with discount & & & & & & & & \\ \hline 18 & Annual demand, D & & & & & & & & & & \\ \hline 19 & Unit cost, C & & & 10% reduction per unit & & & & & & & \\ \hline 20 & Set up cost per order, S & & & & & & & & & & \\ \hline 21 & Annual \%, h & & & & & & & & & & \\ \hline 22 & Annual holding cost per unit & & & & & & & & & & \\ \hline 23 & Minimum Order Qtty, MOQ & & & Must order at least MO & to get d & & & & & & \\ \hline 24 & EOQ,Q & & & & & & & & & & \\ \hline 25 & & & & =MAX(C23,C24) & Formu & ses & ser c & noc & & & \\ \hline 26 & Cycle inventory, Q/2 & & & Avg cycle inventory & & & & & & & \\ \hline 27 & Order frequency, D/Q & & & No. of orders per year & & & & & & & \\ \hline 28 & & & & & & & & & & & \\ \hline 29 & Total Material & & & & & & & & & & \\ \hline 30 & Total Holding & & & & & & & & & & \\ \hline 31 & Total Setup & & & & & & & & & & \\ \hline 32 & Total supply chain cost & & & & & & & & & & \\ \hline 33 & & & & & & & & & & & \\ \hline 34 & Cost difference with discount & & $ & & & & & & & & \\ \hline 35 & & & & & & & & & & & \\ \hline \end{tabular}