2) This is an inventory model.Suppose, now, the firm will order Q to achieve the lowest total cost of buying inventory.What will be the firm's total cost under such a scenario.(You must include all costs).Refer to the Packet for Problem A.

PROBLEM A: Assume that the following discount schedule is appropriate. For the Problem A questions below, suppose annual demand is 120 units, ordering costs are $20 per order, and the annual holding cost rate is 25%. Category Order Size Discount Unit Cost 1 0 to 49 0% $30.00 2 50 to 99 5% $28.50 3 100 or more 10% $27.00