Demand /yearly = 12,000, S = $16, and H =10% of the Price
Offer. Discount Quantity, Discount (%), Discount Price (P)
1. 1 to 999, no discount, $5.00
2. 1,000 to 1,999, 4%, $4.80
3. 2,000 and over, 5%, $4.75
(a) Evaluate the number of computers that the store managershould order in each replacement lot.
(b) Maximum Inventory
(c) Average Inventory
(d) The total annual number of order cycles
(e) Length of the order cycle
(f) Average flow time
(g) Annual inventory-related cost (Yearly total cost)
