a vendors gives discounts to entice larger, Operation Management

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a vendors gives discounts to entice larger

A vendor's gives discounts to entice larger quantity purchases. The price breaks are as follows:

Order Size   Discount   Unit Price
0 - 40            0%       $30
50 - 99     5%       $28.50
100 or more   10%          $27

If your store's yearly demand is 150 units, ordering cost is $20, and yearly inventory carrying cost is 25 percent of the unit prices, what order quantity policy should you follow?

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Operation Management: a vendors gives discounts to entice larger

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