In this problem, we are looking at a small case where we will try to find out the optimal quantity to purchase. A home owner has to replace the drywall of his house. A trip to the local home improvement store reveals that 4'x8' sheets of drywall have three price points as indicated in the table. Another consideration for the landlord is that he is equipped with only a humble half-ton pickup truck that can hold at most 20 sheets. His truck sips fuel, so he considers only wear and tear on his vehicle at $5 to haul all the sheets he will use for the job. The holding percentage is 20%. The landlord believes the entire job all walls and ceiling - will require 10,080 square feet of drywall. Purchase Quantity Price Per Sheet 1-20 $9.40 $9.30 101 or more $9.20 121-100 (e) Consider the $9.40 per sheet figure as the base price and use the above information to answer the following question. What percentage discount from the base price results in an optimal order quantity of 101 sheets? Answer: (f) Use the above information to determine the average inventory level resulting from purchasing the optimal number of sheets per order. Assume he can buy only an integer-multiple of sheets. Answer: (g) After a recent tornado, the home improvement store eliminates the quantity discount benefit and raises the price per