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this approach i believe 3. BIKO is a bike retailer located in the outskirts of Paris. PMX is now offering the following bulk discounts to

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3. BIKO is a bike retailer located in the outskirts of Paris. PMX is now offering the following bulk discounts to its customers: 2% discount on orders above 200 units 4% discount on orders above 500 units 6% discount on orders above 600 units Following information is relevant to forming the decision: Annual demand is 5000 units Ordering cost is $100 per order Annual holding cost is $10 Purchase price is $200 per unit before discount 1:32 al LTE 2*S*D Answer: EOQ (0) Q* = H S = Ordering Cost D = Annual Demand H = Annual Holding Cost per Unit = Insurance Cost per unit + Warehousing Cost = 0.05*P + 6 P = Purchasing Cost per unit P = (1 - %Discount/100))*200 Feasible EOQ (Q) = Lower limit of the range (if Q*

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