Question

material X is supplied by M/s smart enough Ltd.on regular basis at the rate of rs. 40 per unit . The annual demand of the factory is 6400 units. The cost of order entry ,billing and inward inspections comes out to be rs. 200 each order ,while cost of carring one unit of inventory in store is rs. 4 per year . the factory is presently follo3 the policy of EQO. buying . M/s smart enough Ltd. offers 1% discount in case the factory purchase the entire annual demand in one lot. Should the factory accept the the offer or not​

Answer 1

Explanation:

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