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Real-World Applicationshard
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A manufacturer uses 10,000 units of a raw material per year. The ordering cost is \\100perorder,andtheholdingcostisper order, and the holding cost isperorder,andtheholdingcostis\222 per unit per year. The supplier offers a quantity discount: if the order quantity is Qge2000Q \\ge 2000Qge2000, the purchase price is \\9.50perunit;otherwise,thepriceisper unit; otherwise, the price isperunit;otherwise,thepriceis\10.0010.0010.00 per unit. What is the optimal order quantity Q∗Q^*Q∗ that minimizes the total annual cost (purchasing + ordering + holding)?