Consumption rate of an item is 50000 units/ month. Ordering and related cost is Rs. 1000 per order. The unit price of the item is Rs. 10. The rate of inventory carrying cost is 10% of average inventory value per month. The supplier offers a 20% discount on unit price of the item if the order quantity is more than or equal to 11000 units. What should be the Economic Order Quantity?
Finding EOQ when Quantity Discount is Offered
Finding EOQ when Quantity Discount is Offered
Finding EOQ when Quantity Discount is Offered
Consumption rate of an item is 50000 units/ month. Ordering and related cost is Rs. 1000 per order. The unit price of the item is Rs. 10. The rate of inventory carrying cost is 10% of average inventory value per month. The supplier offers a 20% discount on unit price of the item if the order quantity is more than or equal to 11000 units. What should be the Economic Order Quantity?
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