Question: Apply the EOQ model to the following quantity discount situation for which D = 700 units per year, C o = $45, and the annual
Apply the EOQ model to the following quantity discount situation for which D = 700 units per year, Co = $45, and the annual holding cost rate is 20%. (Round your answers to the nearest integer.)
| Discount Category | Order Size | Discount (%) | Unit Cost | Order Quantity |
|---|---|---|---|---|
| 1 | 0 to 99 | 0 | $10.00 | Q1 = |
| 2 | 100 or more | 3 | $9.70 | Q2 = |
What order quantity do you recommend?
Q1Q2
Since Q1 is ---Select--- over under its limit of 99 units, Q1 ---Select--- cannot be is optimal.
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