Annual demand for a component is $2000$ boxes. The company procures the item from supplier at a rate of Rs$.700$ per box. The company estimates the cost of carrying inventory to be $12\%$ per unit per annum and the cost of ordering as Rs$.1050$ per order. Determine the EOQ. The supplier is$,$ however, willing to offer a discount on the unit price as per the following structure:

Upto $399$ boxes $-5$ per cent discount

$400799$ boxes $-7$ per cent discount

$8001000$ boxes $-9$ per cent discount

What should the company decide in this case? Should they make use of the discount offered and reset the EOQ.