Question: A store uses an EOQ inventory model for its most popular product. The current unit purchase cost is 150 dollars. The annual demand is 4016

A store uses an EOQ inventory model for its most
A store uses an EOQ inventory model for its most popular product. The current unit purchase cost is 150 dollars. The annual demand is 4016 units per year. The setup cost is 87 dollars per order. The unit holding cost per year is 31 dollars per unit per year. The product supplier offers 5 percent discount on the purchase cost if the store places orders in quantity of 600 units per order. What is the total inventory and purchase cost if the store takes the discount? If the store takes the discount, then the total inventory and purchase cost is dollars per year. Next page

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