Question: Let's consider the inventory problem with quantity discounts. The parameters are as follows: Annual demand lambda = 2 5 0 0 0 , Order cost
Let's consider the inventory problem with quantity discounts. The parameters are as follows:
Annual demand lambda
Order cost K
I
For order quantities between and you pay cQ per unit
For order quantities between and you pay cQ per unit
For order quantities you pay cQ per unit.
What is your total cost per year if your order quantity is per order?
What is the optimal order quantity round your final answer to the nearest integer
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