Question: Lecture Exercise #9 Items purchased from a vendor cost $20 each, and the forecast for next year's demand is 1000 units. It costs $5 every

Lecture Exercise #9 Items purchased from a vendor cost $20 each, and the forecast for next year's demand is 1000 units. It costs $5 every time an order is placed and the holding cost is $4 per unit per year. a) What is the optimal order quantity each time? b} What is the total cost per year? The vendor offers a 5% discount if the order quantity is 100 units or more (ie. each item costs $19 if the Q 100)

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