You wish to offer XYZ (Buyer) quantity discounts if he will purchase more.

D=10000 Values per year

H=$ 0.20 per unit,

S= $ 5.50 per order

You have to arrive at a quantity discount schedule that year you would offer to buyer. Base price for you is $ 2.2 per unit (MIN 1.8).

Concider EOQ of the buyer and give a quantity discount schedule.

You wish to offer XYZ (buyer) quantity discounts if he will purchase more.

D=10000 values per year

H= $ 0.20 per unit

S= $ 5.50 per order

you have to arrive at a quantity discount schedule that you would offer to buyer. Base price for you is $ 2.2 per unit (MIN 1.8) 2.2, 2.0. 1.8

CONSIDER EOQ OF THE BUYER AND GIVE A QUANITYT DISCOUNT SCHEDULE

EOQ = SQRT (2 * D *S/pH)

EOQ (2.2) = 500

EOQ (2) = 524.4

EOQ (1.8) = 552.8