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George's store has demand for Super Gatoraid of 1000 gallons per year. Current price from supplier is $5 per gallon. The order cost is
George's store has demand for Super Gatoraid of 1000 gallons per year. Current price from supplier is $5 per gallon. The order cost is $5 and the carrying cost is $1 per gallon per year. His supplier offers a price of $4.75 if George orders 200 or more gallons at a time. What is the minimum inventory cost of the optimal order policy? a. $5225 b. $5100 c. $4975 d. $4925 e. $4875
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