Question: 6. (Case Analysis) (20) Good luck & co., requires 12000 units per year. The cost per order is RS.20 and carrying cost per unit

6. (Case Analysis) (20) Good luck & co., requires 12000 units per

6. (Case Analysis) (20) Good luck & co., requires 12000 units per year. The cost per order is RS.20 and carrying cost per unit of average inventory is Rs.1. The purchase price of material is Rs.2 per unit. Find out the Economic order quantity and Total Inventory cost. If a discount of 5% is available for orders size of 4000 units, and there is a 10% discount if the whole requirement is purchased in a single lot. Should the manufacturer accept this offer?

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