INFORMATION The following information was provided by Zapper Enterprises for a product that it sells: Annual demand: 120

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answerhappygod
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INFORMATION The following information was provided by Zapper Enterprises for a product that it sells: Annual demand: 120

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INFORMATIONThe following information was provided by Zapper Enterprises for aproduct that it sells:
Annual demand: 120 000units
Unit cost: R50
Fixed cost per order: R60
Annual carrying cost per unit: 20% of unit cost
The supplier offers a discount scheme as follows:Discount & Order size (units)0% 0 – 2 0004% 2 001 – 4 0005% 4 001 – 6 0006% 6 001+
1. Economic Order Quantity (EOQ) if discounts are not available;and 2 EOQ where discounts are available.
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