Mr. David Mueller is a reseller of sports shoes. The supplier of shoes offers discounts depending on quantity ordered. Following are the discount slabs:
 Order quantity Cost per shoe pair ($)
 1-799 4.40
 800-1199 4.00
 1200+ 3.60
Mr. David needs to decide how many shoe pairs should be ordered to keep total cost minimum. He has developed following estimates.
 Annual demand (D) = 25,000 pairs
 Ordering cost (S) = $12.00
 Carrying cost % per annum (I) = 15%