(Part B ) Paul Peterson is considering manufacturing hole-punch devices. As in Part A, above, the annual demand is 20,000 units. The setup cost is $100 per order, and the carrying cost is $5 per unit per year. The demand rate is 100 units per day and the production rate is 150 units per day. What is the equation/formula to determine the economic lot size? What is the answer? I do not need this answer

Question C: Paul Peterson (see Part B above) has found a supplier of hole-punches that offers quantity discounts. The annual demand is 20,000 units, the ordering cost is $100 per order, and the carrying cost is 0.5 of the unit price. For quantities that vary from 0 to 1,999, the unit price is $10. The price is $9.98 for quantities that vary from 2,000 units to 3,999 units and $9.96 for quantities that vary from 4,000 to 10,000 units. Should Paul take the quantity discount? Show calculation of EOQ and Total Cost for each of the 3 options. Hint: compute the economic order quantity. Hint: Complete the table below. shows the results of the total cost analysis.

Discount Number Order Quantity Material Ordering Carrying Total Cost Cost Cost Cost Unit Price $10 9.98 9.96 2,000 4,000