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Should the offer be accepted

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Question - A manufacturing company uses 1,00,000 units per year. The cost per unit is Rs.5. Administrative cost per order is Rs.500 per order, carrying cost is 20% on average purchase price. The company currently has optimum purchase policy but has offered 4% discount if they purchase 4 times per year. Should the offer be accepted? If not what counter offer should be made?

Reference no: EM133018527

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