INFORMATION The following information was provided by Zapper Enterprises for a product that it sells:

Annual demand: 120 000units

Unit cost: R50

Fixed cost per order: R60

Annual carrying cost per unit: 20% of unit cost

The supplier offers a discount scheme as follows: Discount & Order size (units) 0% 0 2 000 4% 2 001 4 000 5% 4 001 6 000 6% 6 001+

1. Economic Order Quantity (EOQ) if discounts are not available and 2 EOQ where discounts are available.