As an Inventory Manager, You Must Decide on the Order

Multiple Choice

As an inventory manager, you must decide on the order quantity for an item. Its annual demand is 350 units. Ordering cost is $20 each time an order is placed, and the holding cost is 30 percent of the per-unit price. Your supplier provided the following price schedule.
What is the annual cost discrepancy between the optimal order policy and the second best order policy?

A) Less than $5
B) Between $5 and $10
C) Between $10 and $20
D) More than $20