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Suppose we have an Economic Order Quantity (EOQ) problem with discounts.
A (annual demand)= 10000, k (order cost)= 10, c1 (item cost)= 8, h (holding cost)= 0.1
For orders of 2000 or more, the cost is discounted from 8 to 7.3728.
What is the optimal TAC (total annual cost, including order and holding, and also including the purchase costs)?
Give your answer to the nearest integer.
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