Determine the optimal lot sizes

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Reference no: EM132159755

Suppose that demand equals 600 units / year

Order cost equals €8

Inventory holding cost equals 20% (opportunity cost)

Products are bought with quantity discounts

€ 0,3 / unit for 0 <= Q < 500

€ 0,29 / unit for 500 <= Q < 1000

€ 0,28 / unit for 1000 <= Q

Determine the optimal lot sizes for:

Discount on the complete order

Incremental discounts

Reference no: EM132159755

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