Rapid Grower, the supplier of plant food for Greens in Problem 12, has offered the following quantity discounts. If the nursery places orders of 60 bags or less, the cost per bag is $25. For orders of60 to 100 bags, the cost per bag is $23. For orders over 100 bags, the cost is $22 per bag. Greens estimates its holding cost to be 25 percent of the unit price. Determine the most cost-effective ordering policy for Greens.

Data from Problem 12

A local nursery, Greens, uses 1780 bags of plant food annually. Greens works 50 weeks per year. It costs $12 to place an order for plant food. The annual holding cost rate is $6 per bag. Lead time is one week.