Quantity Discount Model-Optimal Policy for All- Units Discount Schedule Example 4.4:If Weighty uses trash bags at a fairly constant rate of 600 per yr,how to place order? Suppose that fixed cost of placing an order is $8,and holding costs are based on 20%annual interest rate. First compute EOQ values corresponding to each of the unit cost. 2KA 2×8×600 2= =400,C,0≤9<500 ICo 0.2×0.3 2K1 2×8×600 9= = 406,C1for500≤9<1000 IC 0.2×0.29 2KA 2×8×600 2= = IC2 414,C2forQ≥1000 V0.2×0.28Example 4.4: If Weighty uses trash bags at a fairly constant rate of 600 per yr, how to place order?  Suppose that fixed cost of placing an order is $8, and holding costs are based on 20% annual interest rate.  First compute EOQ values corresponding to each of the unit cost. Quantity Discount Model- Optimal Policy for All￾Units Discount Schedule 0 0 0 2 2 8 600 400, 0 500 0.2 0.3 K Q CQ IC         1 1 1 2 2 8 600 406, 500 1000 0.2 0.29 K Q C for Q IC         2 2 2 2 2 8 600 414, 1000 0.2 0.28 K Q C for Q IC       