Order Size $1-800$ dozen $801-1999$ dozen $2000-2999$ dozen $3000+$ dozen

Price Per Dozen $$20\mathrm{.}00$ per dozen $$19\mathrm{.}50$ per dozen $$19\mathrm{.}45$ per dozen $$19\mathrm{.}40$ per dozen

The STHDS law firm wants to decide how many legal notepads to order using the EOQ model for quantity discounts. Its ordering cost is $$200$ per order, its anticipated need $($demand$)$ in the coming year is for $180,000$ notepads, and its annual holding cost is $40$ percent of the acquisition cost. Assume that shipments are received instantaneously, demand is known and the usage constant, and the lead time is known and constant.

a$)$ Based on the lowest total annual cost $($ordering cost plus holding cost plus acquisition cost$),$ how many dozen notepads should STHDS order each time?

b$)$ What is the total annual cost $($ordering cost plus holding cost plus acquisition cost$)$ per year for this order quantity?

c$)$ What is the lowest total annual cost $($ordering cost plus holding cost plus acquisition cost$)$ for each of the price points?