Question: Question 3 [ 2 5 points ] : A company experiences annual demand of 1 , 0 0 0 units for an item that it

Question 3[25 points]:
A company experiences annual demand of 1,000 units for an
item that it purchases. The rate of demand per day is very
stable, with very little variation from day to day. The item costs
$50 when purchased in quantities less than 100,$48 for 100 or
more. Ordering costs are $40 and the carrying cost is 25%. How
much should the company buy each time an order is placed?
[Hint: Calculate EOQ and TAC at $50. Compare the TAC for
100 units at $48].
Question 3[25 points]: A company experiences annual demand of 1,000 units

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