Demand for an item is projected to be 210 units per month. The monthly holding costs is $3 per unit and it costs
$40 process an order
A) Determine the EOQ ??
B-1) If the vendor is willing to offer the manager a discount of $4 per order for ordering in multiples of 50 units(eg. 50,100) would you advise the manager to take advantage of the offer?
Yes or no?
B-2) If so, what order quantity would you recommend?