Question: The demand for a supply is 1 0 , 0 0 0 items per year. The fixed cost of ordering is $ 1 0 0

The demand for a supply is 10,000 items per year. The fixed cost of ordering is $100 per order, and holding cost is 25% of product cost. The manufacturer offers a price discount according to the following table. What is the optimal lot size for this supply?
Order quantity Unit price
<50020
500-99919.9
1000-199919.8
>=200019.7

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