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The manager at Roberts Cigars wants to determine the lowest cost order policy given the following purchase discounts offered: cigar costs are $4 each for
The manager at Roberts Cigars wants to determine the lowest cost order policy given the following purchase discounts offered: cigar costs are $4 each for orders less than 500; $3.50 each for orders of 500 1000; and $3.25 each for orders greater than 1000. The order cost = $75, annual demand forecast = 5500 cigars, inventory carrying cost = 30% per year
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