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Now suppose that the discount pricing applies to the entire order rather than marginal pricing ($3 per square foot for orders less than 40,000 square
Now suppose that the discount pricing applies to the entire order rather than marginal pricing ($3 per square foot for orders less than 40,000 square feet, $2.80 per square foot for orders between 40,001 and100,000 square feet, and $2.60 per square foot for orders over 100,000 square feet). What will be the optimal lot size for the manufacturer given this all unit discount policy? What will be the cycle inventory and the annual total cost including item cost? (Show detailed results for each discount level)
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