The office manager for the Metro Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6500 boxes per year. Annual carrying costs are $3 per box, and ordering costs are $28. The following discount price schedule is provided by the office supply company: ORDER QUANTITY (BOXES) PRICE PER BOX  200–999  $16 1000–2999   14 3000–5999   13 6000+       12 Determine the optimal order quantity and the total annual inventory cost.

The EOQ formula cannot be used here because the price of the goods varies according to the size of the purchase order. In this case, the order quantity that decreases annual inventory costs is 3,000 units per order, and total annual inventory costs = $89,060.67.

Step-by-step explanation:

if we apply the EOQ formula:

total annual inventory cost = [(6,500 / 348) x $28] + [(348 / 2) x $3] + (6,500 x $16) = $522.99 + $522 + $104,000

but if the company tried to benefit from discounts due to higher order quantities, total annual cost would be lower:

[(6,500 / 1,000) x $28] + [(1,000 / 2) x $3] + (6,500 x $14) = $182 + $1,500 + $91,000 = $92,682

[(6,500 / 3,000) x $28] + [(3,000 / 2) x $3] + (6,500 x $13) = $60.67 + $4,500 + $84,500 = $89,060.67

the required function is .

step-by-step explanation:

from the given table it is noticed that the graph passing through (-3,7), (0,4), (3,1) and (8,-4).

it is a linear function because the value of y is decrease by one as the value of x increase by 1.

the slope of the function is

the slope of the function is -1 and the y-intercept is 4.

the slope intercept form is

where, m is slope and b is y-intercept.

therefore the required function is . the graph of this function is shown below.

the answer is y < -3 or   y > 3

-3y > 7 + 2

-3 y > 9

y < -3