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A company has Rs 4 per year carrying cost on each unit of inventory, an annual usage of 50,000 units and an ordering cost of

A company has Rs 4 per year carrying cost on each unit of inventory, an annual usage of 50,000 units and an ordering cost of Rs 100 per order. Calculate the economic order quantity. 

What shall be the total annual cost of EOQ? 

If a quantity discount of Re 0.25 per unit is offered to the company when it purchases in lots of 1,000 units, should the discount be accepted?

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To solve this question we will go through it step by step Step 1 Calculate the Economic Order Quantity EOQ The formula to calculate EOQ is EOQ sqrtfra... blur-text-image

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