Question: AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBbCcDdEe AaBbCcDd AaBbc Aae Title Heading 2 Heading 3 Normal No Spacing Heading 1 Problem 1: (6 pts 3+3 ) A retailer

AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBbCcDdEe AaBbCcDd

AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBbCcDdEe AaBbCcDd AaBbc Aae Title Heading 2 Heading 3 Normal No Spacing Heading 1 Problem 1: (6 pts 3+3 ) A retailer purchases an item called XYZ at $ 10 per unit from its supplier. The demand is steady at 100 units per week. This retailer has 50 working weeks per year. The supplier decides to offer price discounts to this retailer in order to attract larger orders. For orders between 1,000 and 1,999 units, the unit cost drops to $ 9.60; for orders of 2,000 or more units, the unit cost is only $ 9.50. Furthermore, ordering cost is $49 per order. The inventory carrying charge, as a percent of the unit price, I, is 20%. You do NOT need to show your work. There is NO partial credits for any mistake (i.e., each answer is either right or wrong). 1.A. What is the optimal order quantity for the retailer? 1.B. What is the total cost at optimality

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