Question: Consider the EOQ model with annual demand D = 1, 000, annual holding cost factor H = 0.02, and unit value V = 45. Suppose

Consider the EOQ model with annual demand D = 1, 000, annual holding cost factor H = 0.02, and unit value V = 45. Suppose the supplier offers tiered pricing for order costs according to:

Tier 1	Order size	Order cost
1	200 to 300	A = 60
2	300 to 400	A = 80
3	400 to 500	A = 100

What is the optimal order quantity?

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