Question

$2(50$

$$marks

$)$

Read the scenario of

$$

Evaluating Order Quantities to Balance Inventory Costs

$$

$(20$

$$marks

$)$

$(10$

$$marks

$)$

$(20$

$$marks

$)$

Evaluating Order Quantities to Balance Inventory Costs

In the bustling town of Riverdale, a specialty tea company named BrewMasters faced the challenge of determining the optimal ordering quantity for its premium tea leaves, considering price break conditions. The company aimed to minimize costs and enhance inventory efficiency.

BrewMasters' supplier provided price breaks based on order quantities. For orders less than

$100$

$$units$,$ the cost per unit was $

$20$

$.$

$$For orders between

$100$

$$and

$999$

$$units$,$ the cost reduced to $

$19$

$$per unit. Finally, for orders of

$1$

$,$

$000$

$$units or more, the cost further decreased to $

$18$

$$per unit.