Question: EOQ with price discount Example: Below is a quantity discount schedule for an item with an annual demand of 2 , 0 0 0 units

EOQ with price discount
Example: Below is a quantity discount schedule for an item with an annual demand of
2,000 units (250 working days one year) that a company orders regularly at an ordering
cost of $10. The annual holding cost is 10% of the purchase price per year and the lead
time is 2 days. Determine the optimal ordering policy.
Order quantity Price
Below 300 units $5
300 to 699 units $4.8
700 units and above $4.5

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