(See Solution) A supplier has the following discount policy for a certain raw material: Q < 1,000 unid. K 1 = $10.00/unid. 1,000 Q < 2,000 unid. K 2 = $9.00/unid.
Question: A supplier has the following discount policy for a certain raw material:
Q < 1,000 unid. K 1 = $10.00/unid.
1,000 Q < 2,000 unid. K 2 = $9.00/unid.
2,000 Q < 5,000 unid. K 3 = $8.50/unid.
Q 5,000 unid. K 4 = $8.25/unid.
Determine the optimal order size assuming that C p =$400/order, F m =20%/year and D=6,000 unid./year. Consider that the cost of maintaining is proportional to the price.
Deliverable: Word Document 
(Steps Shown) - Suppose a supplier has the following discount policy
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![[Steps Shown] During a couple of brainstorming](/images/solutions/MC-solution-library-76914.jpg "[Steps Shown] During a couple of brainstorming sessions with a carpenter")
[Steps Shown] During a couple of brainstorming sessions with a carpenter
(See Solution) The following data shows the information related
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