Economic order quantity calculated at the discounted price

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Reference no: EM13820898

C&A orders 5000 sheets plywood from a supplier per year. Ordering cost is $20 per order, annual inventory holding cost is 10% of item cost, and item cost is $100 per sheet. The supplier will give a 5% discount if C&A orders 200 sheets or more. Which of the following conclusions can be drawn?

A. C&A should take the discount and order 200 sheets.

B. The economic order quantity calculated at the discounted price is not feasible.

C. The best order quantity is 145 sheets.

D. Both A and B.

E. Both B and C.

Reference no: EM13820898

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