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Demand for specific a spare part is ( 2 0 0 9 0 ) boxes per month. The holding cost is 2 5 % per

Demand for specific a spare part is (20090) boxes per month. The holding cost is 25% per year. Each order incurs a
fixed cost of $1,000. The supplier wants to offer a quantity discount pricing scheme with a price of $5 per box for the
first 30,000, a price of $4.90 per unit for the quantity between 30,000 and 50,000, and $4.70 per unit for the quantity
above 50,000 units. a. Analyze all unit quantity discount systems for this case. b. Analyze the marginal unit quantity
discount system for this case. c. Compare two systems and interpret.|
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