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ABC stores stocks toy race cars. Recently it has been given quantity discount by its suppliers. The unit price without discount is $12.00 per
ABC stores stocks toy race cars. Recently it has been given quantity discount by its suppliers. The unit price without discount is $12.00 per unit. If the store orders 800 units or more, it pays $10.00 per unit. The annual demand is 5000 units. The ordering cost per order is $55.00. The holding cost is 20% as a percentage of the unit cost. Calculate a) Economic Order Quantity with and without discount. b) Total Cost for each scenario. c) What order quantity will minimize the total inventory cost?
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