Part $3$: Economic Order Quantity $($EOQ$)$ Analysis

Each Iron Man suit requires $36$ "Star Light" energy units per day. Given the current fleet and operational requirements, the national leaders need to determine the optimal economic order quantity $($EOQ$)$ for "Star Light" energy units. The following information is provided:

Daily usage per suit: $36$ Star Light units

Cost per order: $10,000$ credits

Holding cost per unit per year: $100$ credits

Three price levels for Star Light units:

$1,000,000$ credits for $360$ Star Light units

$900,000$ credits for $720$ Star Light units

$800,000$ credits for $1,080$ Star Light units

Question $3$:

Using the predicted number of Iron Man suits Of $520$ calculate the annual demand for Star Light units.

a$.$ Determine the EOQ without considering quantity discounts.

b$.$ Incorporate the quantity discount information and determine the optimal order quantity that minimizes the total cost.

c$.$ Provide recommendations on the best purchasing strategy for the Star Light units to ensure cost$-$effectiveness and operational efficiency.