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Demand for an item is 2 0 3 0 9 units per year. Each order placed costs $ 1 0 1 . The annual carrying

Demand for an item is 20309 units per year. Each order placed costs $101. The annual carrying cost percentage per item in inventory is 20% each. The variable purchase cost is $2.50 per unit if less than 3000 units will be ordered, $2.40 from 3000 units upto (but not including 4000 units), and $2.30 for at least 4000 units. These are all-units discounts.

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