inventory control research, Operation Research

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Given an inventory system where

Yearly demand = 120 units

Ordering cost = Sh. 45

Price per unit = Sh. 200

Annual carrying cost = 24% of the unit cost

Determine The economic order Quantity

The supplier offers a 1% discount on the unit price if the items are
purchased in lots of 100 at a time. Should the management accept the
offer?

Determine the minimum percentage discount that will make the offer
attractive?

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