Should you accept offer, Inventory carrying cost is 24% of

Should you accept offer

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Reference no: EM13331963

An item is demanded at the rate of 2000 units per year at a uniform rate. Order cost is Rs.350 per order. Inventory carrying cost is 24% of the unit price per year. The suppier has offered a unit price of Rs.100per item but he is willing to reduce it to Rs.95 per item if a purchase order of 1000 units or more is placed. Should you accept this offer?

Reference no: EM13331963

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