Question: You are given a multiple cost proposal from your supplier based on the below information: Order Size Cost 0 - 3,999 12 4,000 - 9,999
You are given a multiple cost proposal from your supplier based on the below information:
| Order Size | Cost |
| 0 - 3,999 | 12 |
| 4,000 - 9,999 | 10.1 |
| 10,000+ | 9.5 |
Additionally, you have the following internal data points:
| Field | Value |
| Ordering Cost | $100 |
| Holding Rate | 10% |
| Annual Demand | 80,000 Units |
You are an EOQ Whiz, and quickly determine the following EOQ values at the different cost points:
| Cost | EOQ |
| 12 | 3,652 |
| 10.1 | 4,040 |
| 9.5 | 4,103 |
Based on this analysis, which cost structure would offer you the lowest TAIC?
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