Question: Assume same data as above: Demand = 3 0 0 0 units / year Inventory value = $ 6 0 / unit Order placement cost

Assume same data as above:
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 15%,
what would the savings be?
Savings = $2453
Savings = $5611
Savings = $3581
Correct!
Savings = $8532

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