Sigma company that has the following data about its order policy: The annual Demand = 100000 units,
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Question:
Sigma" company that has the following data about its order
policy: The annual Demand = 100000 units, the unit price = $200,
the carrying cost = 0.4 and the ordering cost = $150
Requirements:
- Calculate the E0Q, illustrate with graph
- Calculate the number of orders
If the supplier gives discount rate = 5%, and if the order size = 1000 units, Calculate the total cost without discount and with discount respectively
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