As an inventory manager, you must decide on the order quantity for an

  

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
1–199 $10.00
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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