arseneekani04 arseneekani04

05-05-2024
Business

Answered

company sells 1,000 units/month and each item costs $400 to buy. Placing an order costs $640. The company's cost of
capital is 6% pa. Economic order quantity = 800 units.
The supplier offers a 1% discount for purchases of at least 6,000 units.
Should the reorder quantity be moved from its current 800 units to 6,000 units?

Answer :

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