When computing EOQ with two ranges: orders of until 700 units are priced $15 Orders of >700 units are priced $15 for the first 700 and $12 for every unit above 700. I am trying to find total cost using the following formula: DS/Q+QH/2+CD How do I compute it given that Q does not come out to be >700. If I take 701 as the quantity, how do I find CD given that the total demand is 450. Also, h=p(interest rate)*unit price. So, in this case h is variable.

To sum up, I need to understand how to find EOQ using a variable h value and hence the total cost given that the demand is less than 700. I tried to use a weighted h value but couldn't make it work.