Question: Only the second bullet Items purchased from a vendor cost $20 each, and the forecast for next year's demand is 1000 units. It costs $5

Only the second bullet Items purchased from a Only the second bullet

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 (i.e. each item costs $19 if the Q>100). a) What is the optimal order quantity each time? b) What is the total cost per year? O

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