As inventory manager, you must decide on the order quantity for an item that has an annual demand of 2,000 units. Placing an order costs you $20 each time. Your annual holding cost, expressed as a percentage of average inventory value, is 20 percent. Your supplier has provided the following price schedule:

Minimum Order Quantity Price per Unit

1 .............$2.50

200 .............$2.40

300 ............$2.25

1,000 ..........$2.00

What ordering policy do you recommend?