A small manufacturing rm uses roughly 3,400 pounds of chemical dye a year. Currently the rm purchases 300 pounds per order and pays $3 per pound. The supplier has just announced that orders of 1,000 pounds or more will be lled at a price of $2 per pound. The manufacturing rm incurs a cost of $100 each time it submits an order and assigns an annual holding cost of 17 percent of the purchase price per pound. a. Determine the order size that will minimize the total cost. b. If the supplier offered the discount at 1,500 pounds instead of 1,000 pounds, what order size would minimize total cost? D = 3,400 pounds per year S = $100 per order H = .17P