Problem 3. Rock Mountain Tire Center sells 20,000 tires per year. The holding cost is 20% of the unit price, the ordering cost is $40 per order. The supplier decides to offer price discounts in order to attract larger orders. The price structure is shown in the table. Lot size < 500u 500 to 999u 100u Price/unit $20 $18 $17 a) How many tires should Rocky Mountain order each time it places an order? (1p) b) What is the total cost of this policy? (1p) 1