Essay
An item has an annual demand of 25,000 units, a unit cost of $10, an order preparation cost of $10, and a carrying cost of 20%. It is ordered on the basis of an economic order quantity, but the supplier has offered a 2% discount on orders of $10,000 or more. Should the supplier's offer be accepted?
Correct Answer:
Verified
Correct Answer:
Verified
Q2: An item has an annual demand of
Q3: The annual demand is 10,000 units, the
Q4: Discuss the characteristics or assumptions of the
Q5: Demand is not uniform and stock must
Q6: There is no reason to calculate the
Q7: Since the total cost is relatively _
Q8: As the order quantity increases, the average
Q9: Discuss the assumptions of the EOQ model.
Q10: Parts are often ordered in convenient packages
Q11: Some suppliers require a minimum order.