**Expert Q&A**Please fill in the blank.***NOTE: The lowest price is realized at 101 units instead of 100 units as mentioned in the question.***A local nursery, Greens, uses 1,600 bags of plant food annually. Greens works fifty-two weeks per year. It costs $12 to place an order for plant food. Lead time is one week. Rapid Grower, the supplier of plant food for Greens, has offered the following quantity discounts. If the nursery places orders of 60 bags or less, the cost per bag is $24. For orders greater than 60 bags but less than 100 bags, the cost per bag is $22. For orders of 100 bags or more, the cost is $21 per bag. Greens estimates its holding cost to be 25 percent of the unit price. Determine the most cost-effective ordering policy for Greens.Optimal ordering policy is to order _______ bags at a time.

Given Data: *As mentioned in question take 101 units instead 100 units Annual Demand (D)= 1600 bagsWorking days = 52 weeks per yearOrdering Cost (S), =$12Lead Time = 1 weekHolding Cost(H) = $ 25%Quantity Price:i) Item Price (Q<60) = $24ii) Item Price (Q>60<100) = $22iii) Item Price (Q>101) = $21Solution: EOQ =2×D×SH Case 1: When (Q<60) = $24 Then holding cost = 25% of 24 = $6 Then Q =2×1600×126 = 6400 = 80 units Now, this is not feasible as EOQ is not in the quantity range of 0 - 60 units Case 2: when (Q>60<100) = $22 Then Holding Cost = 25% of 22 = $5.5 Q =2×1600×125.5 = 6981.818182 = 83.5572748 ≈ 84 units (round off in whole number) Now, this is feasible as EOQ, is in the quantity range of 60-100 units, Case 3: When (Q>100) = $21 Then Holding Cost = 25% of 21 = $5.25 Q=2×1600×125.25 = 7314.285714 = 85.52359741 ≈86 (Round off in whole number) Now, this is not feasible as EOQ is not in the quantity range of 101 or more units Here need to resemble the total cost of = 84 bags vs 101 bags to obtain the optimum order quantity. Total cost = Total holding cost + Total ordering cost + Total purchase cost Total Cost 84; =Q2 × 2 + DQ×S + (P×D) = 16002× 5.5 + 160090× 12 + (22 ×1600) = 4400 + 228.571428 + 35,200 = 39828.57143 Total Cost 101; =Q2 × 2 + DQ×S + (P×D) = 1012×4 + 1600101× 12 + (21×1600) = 265.125 +190.099+ 33600 = $34055.22401 Therefore, the total cost of the 101 units is less than the total cost of the 90units, Therefore the optimal order quantity is = 101 units.