Question: Review the example 1 1 - 1 1 ( pp . 2 9 5 - 2 9 6 ) worked out in the book and
Review the example pp worked out in the book and give your justification of large increase in purchase quantity in response to a price discount of not as shown in the example This example shows impact of price discount on purchase quantity. Use order cost of $order Develop an annual cost model by combining the cost of purchase, ordering cost and inventory holding cost to justify the result? The example relates to one time price discount followed by return to normal EOQ based purchasing behavior. I have posted the example in Moodle with the title, 'Forward Buying Example".
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