Question: Annual demand: 1 0 , 0 0 0 units. Setup cost: $ 7 5 Holding cost: 2 0 % of item cost. a ) What

Annual demand: 10,000 units.
Setup cost: $75
Holding cost: 20% of item cost.
a) What is the optimal order quantity, given the following price breaks for purchasing the item?
b) What price should the firm pay per unit?
c) What is the total annual cost at the optimal behaviour?

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