Paradize Hotel has an annual demand of 40,000 barrels of red wine. The barrels cost Rs.1200 each. Fresh supplies can be obtained immediately, but ordering costs and the cost of carriage inwards are Rs.2000 per order. The annual cost of holding one barrel in inventory is estimated to be Rs.120. The economic order quality has been calculated 3500 barrels. The suppliers introduce a quality discount of 2% on orders of at least 5000 barrels and 2.5% on orders of at least 7500 barrels.

Using the above case, determine weather the least-cost order quantity is still the EOQ of 3500 barrels.