Assignment No$.2$

Course Code: : DEOPR$639$

Registration Number:

Instructions:

a$.$ Attempt all questions given below in your own handwriting. Assignments in typed format will not

be considered for evaluation.

b$.$ The student has to complete the assignment on the allocated pages only. Any other page in case

utilized shall not be considered.

Q$2.$ Hindustan Levers is a manufacturer of Surf detergent powder. A $100-g$ pack of its detergent

power is priced at $30$ for its suppliers. One of its supplier's purchases $16,000$ packs per annum.

The supplier incurs an ordering cost of $350\mathrm{.}00$ per order and has a carrying cost of $12\%$ of the

inventory value. Hindustan Levers offers discounts for the following ranges of bulk purchases to

its suppliers: $0\mathrm{.}5\%$ for $3,000-6,999$ units, $0\mathrm{.}75\%$ for $7000-9,999$ units, and $1\%$ for $10,000$ and

more units. Which discount option should the supplier choose? What is the EOQ in this case?

$[10$ Marks$][$CO$4,$ L$3]$