Solve using Excel.

Assume that the following quantity discount schedule is appropriate:
		Order Size	Discount	Unit Cost
		0 to 1499	0%	$3.00
		1500 to 2999	7%	$2.79
		3000 or more	15%	$2.55
If annual demand is 9600 units, ordering cost is $32 per order, and annual inventory carrying
cost is 20%.
1	EOQ with 0% discount is
	a)	1000
	b)	1011
	c)	1049
	d)	1098
	e)	none of the above
2	Best order quantity with 7% discount is
	a)	1011
	b)	1049
	c)	1500
	d)	3000
	e)	none of the above
3	With the best order quantity with 15% discount, the annual holding cost is
	a)	$300.0
	b)	$418.5
	c)	$837.0
	d)	$765.0
	e)	none of the above
4	With the best order quantity with 7% discount, the annual ordering cost is
	a)	$303.9
	b)	$204.8
	c)	$102.4
	d)	$307.2
	e)	none of the above
5	The lowest total annual cost and the order quantity is
	a)	$29,407 with 1,000 order quantity
	b)	$27,407 with 1,500 order quantity
	c)	$25,347 with 3,000 order quantity
	d)	$623.3 with 1,500 order quantity
	e)	none of the above