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Currently the company purchases 2000 units per order to fulfill its annual demand of 20,000 units of inventory. Average cost per order is $6 and supplier takes from 8 to 20 days to deliver after receiving order.
 
Normal purchase price of the product is $30, however; for an order of 2,000 units supplier gives a discount of 1%.
 
Annual cost of holding one unit in stock =$10.
 

Evaluate whether the company should order at EOQ level.

Requirements:

Evaluate whether the company should order at EOQ level.

Marks: 5

Answers submitted

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Kamrunnahar Takia's picture
Kamrunnahar Takia
11/14/2020 - 01:11

10150
5
Kamrul Hasan's picture
Kamrul Hasan
11/12/2020 - 19:17

10130
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Kamrul Hasan's picture
Kamrul Hasan
11/01/2020 - 13:24

9970
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Shakhaoat Hossain shibly's picture
Shakhaoat Hossa...
10/28/2020 - 12:02

9936
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Rakhi Gupta's picture
Rakhi Gupta
08/06/2020 - 14:03

9322
5