Question: Please write clearly or use the computer to type the answer so that I can see it clearly, thank you!!! There is a hospital Centre.

Please write clearly or use the computer to type the answer so that I can see it clearly, thank you!!!

There is a hospital Centre. The centre purchased two laundry products, including softeners and detergents from suppliers. The price of each product is $400 per pack, which is the purchase cost per unit of the centre. The annual demand for softener and detergent is 20,000 and 40,000 packs respectively. Every time an order is placed, there will be a fixed cost of $180, which is the common cost of detergent and softener. Specific product ordering costs for softeners and detergents are US$125 and US$70 per order, respectively. The annual cost of each pack of detergent and softener remains the same at 5% of the purchase cost of each pack. Meets the assumptions of the Economic Order Quantity (EOQ) model. Please note that the fixed cost of each order includes ordinary order and product-specific order costs, and these costs should be considered when calculating EOQ.

(a1) From a logistics managers point of view, discuss THREE factors that the Center should consider for the adoption of the order quantity with the discount offer.

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