Question: Assume: Demand = 3 0 0 0 units / year Inventory value = $ 6 0 / unit Order placement cost = $ 4 0

Assume:
Demand =3000 units/year
Inventory value = $60/unit
Order placement cost = $400/order
Annual carrying costs = $0.30 per dollar held/yr or 30%
If you supplier calls with a special 1X discount of 5%,
how much should you buy?

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