Consider nine parts ordered from a single supplier. The supplier offers a discount of 6%

if the value of the total replenishment quantity is at least $10,000. Assume that $4.50 is the basic cost of placing an order with one item involved. The inclusion of each additional item costs $0.50. r = 0.22 $/$/year and the Di’s and v0i’s are shown below. Find the best order quantities. P-96 Item i Di (Units/Year) v0i ($/Unit)

1 2,000 11.00 2 16,000 15.00 3 1,300 18.00 4 1,000 25.00 5 3,000 32.00 6 250 65.00