Question: Problem 5 ( 1 5 points ) . A manufacturing plant procures 1 0 0 , 0 0 0 filters per year. Each unit has

Problem 5(15 points). A manufacturing plant procures 100,000 filters per year. Each unit has a fixed order cost is $50. To maintain the inventory in optimal conditions, there is a carrying cost rate of 10% per year. The vendor of filters has offered the following price breaks: for orders of more than 5,000 filters, cost is $4.50/unit; for orders between 1,000 and 5,000 filters, cost is $4.75/unit; orders less than 1,000 filters have a cost of $5.00/unit.
(8 points). Find the economic order quantity.
(7 points). Calculate the average annual cost for the optimal solution.

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