Question: As the inventory manager, you must decide the order quantity for an item that has an estimated annual demand of 1,500 units. It costs you

As the inventory manager, you must decide the

As the inventory manager, you must decide the order quantity for an item that has an estimated annual demand of 1,500 units. It costs you $50 each time you place an order and your holding cost is 45 percent of purchase price. Your supplier has provided the following price schedule: Price/unit Units Ordered $5.00 1-399 $4.90 400-599 $4.80 600 and up Applying the quantity discounts model, what is the optimal total annual cost? O 6868.00 7054.00 07476.00 07973.00

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