Question: Derive an equation for computing the economic order quantity, complete with description of costs, assumptions and the total inventory cost curve (diagram). Also Determine the

Derive an equation for computing the economic order quantity, complete with description of costs, assumptions and the total inventory cost curve (diagram).

Also Determine the EOQ for a Rs. 25 item which has a holding rate of 15% per annum and an ordering cost of Rs 300 per order. Assume the item has an annual demand for 2400 units.

Also determine the order size if his supplier is willing to give a discount of Rs. 1 per unit provided he buys at least 1000 unit per order.

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