Question: Determine the optimal order quantity using the quantity discount model discussed in class. Annual Demand = 100,000 The order cost = $50 Annual holding rate

Determine the optimal order quantity using the quantity discount model discussed in class. Annual Demand = 100,000 The order cost = $50 Annual holding rate = 20% Price varies depending on the order quantity per the following schedule: Orders between 1 to 2,000 units cost $12. Orders of 2001 to 5,000 cost $11 Orders of 5,001 and greater cost $10 What is the optimal order quantity? Based on your answer to question 20, what's the price you will pay when buying at the optimal order quantity? 11 10 12 Based on your answers to questions 20 and 21, what is the Total Annual Inventory Cost when you buy this part at the optimal order quantity and the corresponding price? $1,104,690 $1,006,001 $1,204,899 $1.004.472

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