As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 1,000 units. Ordering costs are $50 each time an order is placed, and the holding cost is 25 percent of the per-unit price. Your supplier provided the following price schedule.
Quantity Price per Unit
200–499 $ 9.80
500 or more $ 9.60
what ordering-quantity policy do you recommend and what will be the cost?
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