Question: Apply the EOQ model to the following quantity discount situation in which D = 400 units per year, C o = $44, and the annual
Apply the EOQ model to the following quantity discount situation in which D = 400 units per year, Co = $44, and the annual holding cost rate is 20%.
| Discount Category | Order Size | Discount (%) | Unit Cost |
| 1 | 0 to 99 | 0 | $10.00 |
| 2 | 100 or more | 3 | $9.70 |
What order quantity do you recommend? If required, round your answer to the nearest whole number.
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