Acme Company has sells a product that has an annual demand of 180 units.Ordering cost is $20.00 per order, and annual inventory cost is 25%.The product can be purchased from a supplier to using the following price-quantity discount table:

Order size

Discount

Unit Cost (net of discount)

0 to 49

0%

$30.00

50to 99

5%

$28.50

100 or more

10%

$27.00

1.Assume that the current inventory policy of the company is to order once per month.What is the total inventory cost (holding + ordering + purchase) at this current practice? (5 pts)

What recommendation would you give to Acme regarding its current ordering policy - keep ordering at the same level, or change the order size? Provide support to your answer. Be as clear and as specific in your analysis. (5 pts)

How do I calculate the holding costs on this problem?