Question: Annual Demand = 2 0 0 , 0 0 0 The order cost = $ 1 0 0 Annual holding rate = 2 5 %

Annual Demand =200,000
The order cost = $100
Annual holding rate =25%
Price varies depending on the order quantity per the following chedule: Orders between 1 to 50,000 units cost $11Orders of 50,001 to 150,000 cost $10.75Orders greater than 150,000 cost $10.50
Determine the Order quantity using the price discount model. Also determine the TAIC and the optimal order quantity

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