An electronic store sells 3,000 HD TV sets every quarter of the year. Each TV set costs the store $ 270.00. The carrying cost is
set at 2% of the purchase price per unit per year. Each time an order is placed it costs the store $ 120.00 The supplier charges $10 for delivery of each order. Calculate: a. Optimal order quantity b. Number of orders per year c. The supplier is willing to give a discount of 3% on the price of each set if the manager of the store orders 3,000 sets at a time. Should the manager accept the offer?
1 answer:
Answer:
Check the explanation
Explanation:
The Economic Order Quantity (EOQ) is the amount of units that a firm or an organization is expected to include to its inventory with each order to reduce minimally the overall costs of inventory—such as order costs, holding costs, and shortage costs.
Kindly check the step by step explanation in the attached images below to get the solution to the question
You might be interested in