What will be the annual saving

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Reference no: EM132161732

A quantity discount of 10% in existing unit price is offered, provided order and supply quantity is at least 500 units.

The following information is given:

Annual demand - 1000 numbers

Procurement cost per order - Rs 100

Inventory carrying cost per annum- 22% of the acquisition cost

Existing unit price ( acquisition cost ) Rs 10

What will be the annual saving ( if any) if discount is availed of, instead of ordering out as per EOQ based on the information above?

Reference no: EM132161732

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