Question: Please answer the question with clear explanation. A purchasing agent buys a particular type of silicon wafer following a quantity discount policy stated as the

Please answer the question with clear explanation.

A purchasing agent buys a particular type of silicon wafer following a quantity discount policy stated as the following table. Assume an order setup cost of $100 and an annual requirement of 20,000 wafers. Assume a 20% yearly carrying costs for holding cost calculation. Order quantity Unit price [0,3000) $2.60 [3000,4000) $2.50 [4000,20000] S2.40 Determine the optimal order quantity and optimal annual cost

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