A general hospital buys a certain antibiotic from a certain supplier. The drug can be bought at the following prices;   For...

A general hospital buys a certain antibiotic from a certain supplier. The drug can be bought at the following prices;

For quantities of 1 up to 4,999 is $2.75   per unit

For quantities from 5000 to 9,999 is $2.60    per unit

For quantities over 1 up to 10,000 is $2.50 per unit

The demand (D) for the drug in the hospital is 50,000 units per year.

There is an ordering cost (K) of $50 per order and a holding cos of 20% of the cost of the item per unit per year.

Find the optimal purchasing policy for the hospital.