The Microwave Electric Supply Company provides electricity to the cataos. You are currently evaluating your hedge oil inventory. Your current supplier tells you that if

The Microwave Electric Supply Company provides electricity to the cataños. You are currently evaluating your hedge oil inventory. Your current supplier tells you that if you buy this month, you might get some discounts, because next month, the price will increase by 30%. The annual demand is 7500 barrels of oil. The sorting cost is $10, i = .39, the cost of each barrel is $33.

The discounts are as follows:

interval price	Precio
1 - 100	33
101 - 300	32
301 -	30

1. Calculate the most appropriate order size and therefore what discount should be received and why.

2. Determine the cost of annual inventory.