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(d) Draw rough hand curves of TC versus Q for each of the discount categories. Use the same format as in Fig. 18.3 (a solid curve where feasible and a dashed curve where infeasible). Show the points found in parts (b) and (c). However, you don’t need to perform any additional calculations to make the curves particularly accurate at other points.

(e) Use the results from parts (c) and (d) to determine the optimal order quantity and the corresponding value of TC.

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T (f) Use the Excel template for the EOQ model with quantity discounts to check your answers in parts (b), (c), and (e).

(g) For discount category 2, the value of Q that minimizes TC turns out to be feasible. Explain why learning this fact would allow you to rule out discount category 1 as a candidate for providing the optimal order quantity without even performing the calculations for this category that were done in parts (b) and (c).

(h) Given the optimal order quantity from parts (e) and (f), how many orders need to be placed per year? What is the time interval between orders?

 
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