## Discount Pricing Schedule Assignment

**(Don't use EXCEL and be clear with solution steps writing the rules)**

**A mail-order company uses 200 boxes a month. The company incurs a fixed order placement, transportation and receiving cost of $96 each time an order is placed with the manufacturer. The holding cost is 20 percent of the cost. The manufacturer uses the following unit discount pricing schedule.**

Order Quantity |
Cost per Box |

100-199 |
$75 |

200-499 |
$50 |

500 or more |
$25 |

**Evaluate the number of boxes that the company should order in each lot in order to minimize the total cost of inventory.****What does the total inventory cost?****How many orders should the company place in a year in order to minimize the total cost of inventory?****Do the annual holding cost and annual ordering cost the same? Why and why not.**

**Discount Pricing Schedule Assignment**

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