Inventory models: Quantity discount model
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1 < Q < 1000 unit => $5.00
1000 <= Q < 2000 units => $4.90
2000 <= Q units => $4.75
The discounts apply to all units. For each of the following items treated separately, what is the appropriate order quantity to use, assuming a common value of r = 0.3 (Holding cost is 30 percent of the unit cost)?
Item D (units/year) Ordering cost ($)
1 10,000 25
2 1,000 25
3 4,000 25
4 130,000 25
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