Chris Beehner Electronics stocks toy remote-control drones. Recently, the store has been offered a quantity discount schedule for these drones. This quantity schedule was shown in Table 12.2. Furthermore, setup cost is $200 per order, annual demand is 5,200 units, and annual inventory carrying charge as a percentage of cost, I, is 28%. What order quantity will minimize the total inventory cost?

APPROACH c We will follow the two steps just outlined for the quantity discount model