Question: QUESTION 3 As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 2000 units. Ordering cost is

QUESTION 3 As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 2000 units. Ordering cost is $40 each time an order is placed, and the holding cost is 20 percent of the per-unit price. Your supplier provided the following price schedule. Quantity Price per Unit 1-149 $6.00 150-1099 $5.00 1100 or $4.90 more (9 points, 3 points each) What ordering-quantity policy do you recommend? Units should be ordered each time What is total annual cost (sum of inventory holding, ordering and product cost) if you order 400 units each time you order? Total annual cost dollars What is annual holding cost if you order 400 units each time? Total annual inventory holding cost dollars

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