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a factory operates with 500 tons steel/day. consider the factory purchases steel for $1490/ton if Q < 1200 tons; $1220/ton if 1200 Q < 2400, and $1100/ton if Q 2400.

With every order there is a a fixed cost of $2250, also keep in mind there's a annual holding cost rate i = 0.25.

(Divide 0.25 by 365 days to obtain daily holding cost rate).

What is the optimal order amount and total cost for the all-units discount structure and the incremental discount structure?