Question

X ltd. has received an offer of supply at different discounted prices on its different order sizes of materials as under: Price per ton Order sizes (quantity in tons) 1,200 Less than 500 1,180 500 or less than 1000 1,160 1000 or less than 2000 1,140 2000 or less than 3000 1,120 3000 or above Other information is as under: (i) Annual requirement of the material 5000 tons (ii) Ordering cost per order (iii) Storage cost per annum 20% of Material Cost Art Calculate Economic Order Quantity. Also state the difference if the supplier doesn't offer any discount and charges per ton price at Rs.1,500​

Answer 1

Answer:

X ltd. has received an offer of supply at different discounted prices on its different order sizes of materials as under: Price per ton Order sizes (quantity in tons) 1,200 Less than 500 1,180 500 or less than 1000 1,160 1000 or less than 2000 1,140 2000 or less than 3000 1,120 3000 or above Other information is as under: (i) Annual requirement of the material 5000 tons (ii) Ordering cost per order (iii) Storage cost per annum 20% of Material Cost Art Calculate Economic Order Quantity. Also state the difference if the supplier doesn't offer any discount and charges per ton price at Rs.1,500

Explanation:

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