Question

A retailer has an annual demand of 2500 units of a particular product. The ordering cost per
order is Rs.12 per order, whereas the carrying cost per unit per year is 16% p.a. of inventory
value. The purchase price is Rs.1 per unit.
a) Find E.O.Q and total inventory cost.
b) Ifa discount of 5% is available for orders of 1000 units or more but less than 2000 units,
should the retailer accept this offer?
c) Would your advice differ if he is required
his annual requirements in single order?​

Answer 1

Answer:

option b is correct

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