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Clement Bait and Tackle has been buying a chemical water conditioner for its bait ( to help keep its baitfish alive ) in an optimal
Clement Bait and Tackle has been buying a chemical water conditioner for its bait to help keep its baitfish alive in an optimal fashion using EOQ analysis. The supplier has now offered Clement a discount of $ off all units if the firm will make its purchases monthly or $ off if the firm will make its purchases quarterly. Current data for the problem are:D units per year;S $ per year;P $a What is the EOQ at the current behavior? b What is the annual total cost, including product cost, of continuing their current behavior? c What are the annual total costs, if they accept either of the proposed discounts? d At the cheapest of the total costs, are carrying costs equal to ordering costs
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