Question: 1. Assume: Demand = 6000 units/year Inventory value = $60/unit Order placement cost = $400/order Annual carrying costs = $0.30 per dollar held/yr or 30%

1.

Assume:

Demand = 6000 units/year Inventory value = $60/unit Order placement cost = $400/order Annual carrying costs = $0.30 per dollar held/yr or 30%

If you supplier calls with a special 1X discount of 10%, what would the savings be?

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