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Business, 13.10.2020 23:01 ipcmeaganlatham

he manager at Robert’s Cigars wants to determine the lowest cost order policy given the following purchase discounts offered: cigar costs are $4 each for orders less than 500; $3.50 each for orders of 500 – 1000; and $3.25 each for orders greater than 1000. The order cost = $75, annual demand forecast = 5500 cigars, inventory carrying cost = 30% per year. Find the EOQ or Q you should order at each price break presented. Find the Total Annual Inventory Costs (TAIC) for the quantity ordered at each price break presented. 1) The annual carrying costs are greater than the annual ordering costs for the 3rd price break option. Group of answer choices True False

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