mheducation.com AM (100 minutes) Saved Help Save & Exit Submit Sheet Metal Industries Inc. (SMI) is a Tier 1 supplier to various industries that use components made from sheet metal in their final products. Forecasts based on historical data indicate that SMI will have a demand of 200,000 sheets on an annual basis. The purchasing department estimates that it costs $300 to process each order, and SMI has an inventory carrying (holding) costs equal to 15% of the unit price. The steel producer has a minimum order quantity of 1,000 sheets, and offers a discounted price based on the quantity ordered, as follows: Order Quantity Unit Price 1.000 --> 9.999 $2.35 10,000 ---> 29,999 $2.20 30,000+ $2.15 Based on this information, use the discounted model to help the purchasing department determine the optimal order quantity that will minimize total costs