The bookstore at Tech purchases jackets emblazoned with the school name and logo from a vendor. The vendor sells the jackets to the store for $38 apiece. The cost to the bookstore for placing an order is S120, and the annual holding cost is 25% of the cost of a jacket. The bookstore manager estimates that 1700 jackets will be sold during the year. The Vender has offererd bookstore the following volume discount schedule. 1. Order Size Discount 1-299 300-499 500-799 800+ 0% 2% 4% 5% Determine the bookstore's optimal order quantity and the total amount annual inventory cost
