Question: Apply the EOQ model to the following quantity discount situation in which D 500 units per year, Co E40 and the annual holding

Apply the EOQ model to the following quantity discount situation in which D ¼ 500 units per year, Co ¼ E40 and the annual holding cost rate is 20 per cent. What order quantity do you recommend?

Discount Category Order Size Discount (%) Unit Cost E 1 0 to 99 0 10.00 2 100 or more 3 9.70

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