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In the calculation of an optimal policy for an all-units discount schedule, you first compute the EOQ values for each of the three order costs, and you obtain: Q(0)=800, Q(1)=875, and Q(2)=925. The all-units discount schedule has breakpoints at 750 and 900. Based on this information only, can you determine what the optimal order quantity is? Explain your answer.

Operation Management, Management Studies

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  • Reference No.:- M93110853

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