Suppose that a certain item maintained in an inventory has a demand of 15,750 units per year. In addition, it is known that the product is worth $7.50 per unit, inventory-carrying costs are 30% per year, and replenishment order-processing costs are $12 per order. If the fixed-order-quantity method of control is used.
A) Develop an order-quantity-cost.
B) Find the reorder-point quantity, assuming that the lead time is two weeks.
Referring to the data provided above, determine the order quantity when the following transportation-rate-break and price-discount information is considered.