The supplier for toy race cars has revised the quantity discount schedule and presented as follows

Discount number	Discount quantity	Discount(%)	Discount Cost($)
1	0 to 500	0	6.00
2	500 to 1500	5	5.70
3	1500 and over	10	5.40

Determine the which order quantity that minimize the total inventory cost.

the normal cost for the toy race cars is $5. For orders between 1,000 and 1,999 units, the unit cost is $4.80, and for orders of 2,000 or more units, the unit cost is $4.75. Furthermore, the ordering cost is $49 per order, the annual demand is 5,000 race cars, and the inventory carrying charge as a percentage of cost, I, is 20% or 0.2