For product A, a firm has an annual holding cost that is 20% of the item price, an ordering cost of $120 per order, and annual demand of 15,000 units. The products discount schedule is given in the following table.

Order Size	Price Per Unit
1 250	$30.00
251 500	$28.00
501 799	$26.00
800 or more	$25.00

-Determine the most cost-effective ordering quantity -What is the total cost for the order quantity determined in 1).

-Describe inventory policy