Question: QUESTION 4 ( 2 0 Marks ) REQUIRED Use the information provided below to determine the following: 4 . 1 Total ordering costs if discounts

QUESTION 4(20 Marks) REQUIRED Use the information provided below to determine the following: 4.1 Total ordering costs if discounts are not available 4.2 EOQ where discounts are available INFORMATION The following information was provided by ST Suppliers for a product that it sells: Annual demand 36000 units (3 marks)(17 marks) Unit cost R50 Fixed cost per order R25 Annual carrying cost per unit 10% of unit cost Economic order quantity 600 units The supplier offered a discount scheme as follows: Discount Order size 0%07994%8008995%90011996%1200+

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