Question: Write down the formulas , including a guide to what the letters represent, used in Quantity Discount Model and the four steps of using Quantity

Write down the formulas, including a guide to what the letters represent, used in Quantity Discount Model and the four steps of using Quantity Discount model to solve an inventory management problem. Suppose that the D = 3,000, S = $36, I = 0.2, and Unit price P = $3. Find the optimal contract based on Quantity Discount model. Show your work. Please read the whole problem and use the numbers that are included!

Contract Number 1 1 Discount Quantity Discount (%) 0 to 999 no discount 1,000 to 1,999 5 2,000 and over 10 2 w N 3

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