REQUIRED Use the information provided below to determine the following: 5.1.1 EOQ if discounts are not available 5.1.2 The quantity that should be ordered considering the discounts that are available INFORMATION The following information was provided by AB Suppliers for a product that it sells: Annual demand 200 000 units Unit cost R50 Fixed cost per order R100 Annual carrying cost per unit 20% of unit cost The supplier offered a discount scheme as follows: Discount 0% 4% 5% 6% Order size 0-3 199 3 200-7999 8 000 - 19 999 20 000+

REQUIRED Use the information provided below to determine the following: 5.1.1 EOQ if discounts are not available 5.1.2 The quantity that should be ordered considering the discounts that are available INFORMATION The following information was provided by AB Suppliers for a product that it sells: Annual demand 200 000 units Unit cost R50 Fixed cost per order R100 Annual carrying cost per unit 20% of unit cost The supplier offered a discount scheme as follows: Discount 0% 4% 5% 6% Order size 0-3 199 3 200-7999 8 000 - 19 999 20 000+

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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