Eoq model and quantity discount

Reference no: EM1393896

Apply the EOQ model to the following quantity discount situation in which D=500 units per year, C0=$40, and the annual holding cost rate is 20%. What order quantity do you recommend?

Discount Category Order Size Discount (%) Unit Cost

1 0 to 99 0 $10

2 100 or more 3 $9.70

Reference no: EM1393896

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