Question: Let's consider the inventory problem with quantity discounts. The parameters are as follows: Annual demand lambda = 25000, = Order cost K = 100, =

Let's consider the inventory problem with

Let's consider the inventory problem with quantity discounts. The parameters are as follows: Annual demand lambda = 25000, = Order cost K = 100, = - 0.3. For order quantities between 0 and 499, you pay c(Q) = 21.60 per unit For order quantities between 500 and 999, you pay c(Q) = 20.95 per unit For order quantities >= 1000, you pay c(Q) = 20.90 per unit. What is your total cost per year if your order quantity is 540 per order

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