Extend your inventory problem at question 1 to inventory problem with discount. Determine the required input data and answer the following questions: a. Determine how often the firm should order. b. Determine the size of each order. c. At what price should the firm order? *Fort he product at least 3 discount prices are required

Let us Assume Operating days in year=112 Daily demand = 19 X = Lead time = 2 days Y = 500 units D-Annual Demand = 112 days per year x 19 stones per day = 2128 stones S = Ordering cost = 550 H= Holding cost =$1 a Optimal order size, EOQ = square root (2xDxS/H) EOQ = square root (2x2128x50 /1) = 461.30 = 462 stones b. Optimal number of orders per year N = D/O = 212B/462 = 4,60 c Optimal number of days between order -working daysumber of orders = 112/4.60 = 24.35 days d. Annual inventory cost = Total Holding cost (Q/2)* H + Total ordering cost (D/QxS = (462/2)x1 + (2128/462) x 50 +231 +230.30 - 461,30 e Lead time = 2 days Reorder quantity = Lead time x Average daily usage = 2 x 19 = 38 stones f. Here Y = 500 units As per the formula, 500 = square root (2xDxS/H) 500 - square root (2 x 2128 x S/1) Squaring both sides 250000 = 4256 5/1 250000 x1 = 4265 S S = 250000 / 4265 = $58,62