The average demand for a product is 278 per month The average ordering cost each time with the supplier is $98 The unit annual holding cost is 12 of the product value The product supplier offers an all unit quantity discount as follows Order quantity Unit price 1 499 $18 500 or more $10 Please determine the minimum total annual inventory cost that is corresponding to the optimal order quantity in this quantity discount scheme Numbers only Keep 3 decimal if not exact, either round up or down is ok

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Question: The average demand for a product is 278 per month. The average ordering cost each time with the supplier is $98. The unit annual holding

The average demand for a product is 278 per month. The average ordering cost each time with the supplier is $98. The unit annual holding cost is 12% of the product value. The product supplier offers an all unit quantity discount as follows.

Order quantity	Unit price
1-499	$18
500 or more	$10

Please determine the minimum total annual inventory cost that is corresponding to the optimal order quantity in this quantity discount scheme.

Numbers only. Keep 3-decimal if not exact, either round up or down is ok.

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