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[ 1 0 points ] CentraState Health is a local hospital in Freehold, NJ . It is planning its inventory for the coming year. Based

[10 points] CentraState Health is a local hospital in Freehold, NJ. It is planning its inventory for the coming
year. Based on their forecast, it has been decided that they will need to order 40,000 test packs consisting
of various rapid tests (flu, COVID etc.) for its hospital for the year. A local supplier has oAered to sell them
this kit at what the procurement dept. believes are reasonable prices. The order cost for the hospital is
$800(shipping and inspection) and the unit holding cost is $2/unit/year. The supplier is oAering the
following price schedule. The hospital is open 365 days a year.
Order Size
Per unit price $3.40 $3.20
0-999910,000-19,99920,000-39,00040,000+
$3.00
$2.80
a) How many units should the hospital order to minimize the total cost for the year?
b) What is the total cost?
c) What is the time between the orders?

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