Question: Weekly demand for motors is normally distributed with a mean of 1 , 5 0 0 and a Demand for specific a spare part is

Weekly demand for motors is normally distributed with a mean of 1,500 and a Demand for specific a spare part is (20,870)boxes per month. The holding cost is 25% per year. Eachorder incurs a fixed cost of $1,000. The supplier wants to offer aquantity discount pricing scheme with a price of $5 per box for the first 30,000,a price of $4.90 per unit for the quantity between 30,000 and 50,000, and $4.70 per unit for the quantity above 50,000 units. a.Analyze all unit quantity discount systemfor this case.b.Analyzethe marginal unit quantity discount systemfor this case.c.Compare two systems and interpret.

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