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Determine the optimal order quantity for a purchased part having the following characteristics:
The annual demand is 20,000 units.
Cost of processing each purchase order is $22.
The Annual inventory carrying cost rate is 0.2.
The unit price schedule is:
For an order of 1 to 499 unties $3.00 each.
For an order of 500 to 1,999 units $2.95 each.
For an order of 2,000 or more $2.90 each.
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