Question: Please provide corrections. Inv Mgt- Problem 9: Quantity Discounts Model We need 1,000 electric drills per year. The ordering cost for these is $100 per

Please provide corrections.

Please provide corrections. Inv Mgt- Problem 9:

Inv Mgt- Problem 9: Quantity Discounts Model We need 1,000 electric drills per year. The ordering cost for these is $100 per order and the carrying cost is assumed to be 40% of the per unit cost. In orders of less than 120, drills cost $78; for orders of 120 or more, the cost drops to $50 per unit. Should we take advantage of the quantity discount? D=1,000 No discount 4120 = 78 >120 = $50 order H = 40% P = (640)LP) S - 100 per . EOQ = 205 211000/100 1 .40 (50) = 140 writsaty Not feasible TT cost (90100+(139)1.40)50+50 11000)-5 2033,33 120 C. Optimal ordes aty is 120+ units @ a price of $50 for a TT cost of $52035

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