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Q4. The annual demand of XYZ Ltd is 100,000 units. The costs per order are GHc200 and holding costs represent 20% of the purchase price

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Q4. The annual demand of XYZ Ltd is 100,000 units. The costs per order are GHc200 and holding costs represent 20% of the purchase price which GHc4 (excluding discounts). The following discounts are available for bulk buying: 2,000 2,500 0.2% 2,501 3,500 0.4% Calculate the Economic Order Quantity (EOQ) and determine which option is the best for ordering material for XYZ Ltd

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