Question 2 A Company manufactures a special product which requires a component 'Alpha'. The following particulars are collected for the year 20X1: (i) Annual demand of Alpha 8,000 units (ii) Cost of placing an order * 200 per order (iii) Cost per unit of Alpha * 400 (iv) Carrying cost p.a. 20% The company has been offered a quantity discount of 4 % on the purchase of 'Alpha' provided the order size is 4,000 components at a time. Required: (1) Compute the economic order quantity (ii) Advise whether the quantity discount offer can be accepted