Sam is a new inbound planning analyst at his company. One of the items he manages has an annual demand of 100,000 units per year. The cost of the item is $50/unit. The carrying cost (W) is 20% and the ordering cost is $200. The supplier offers a discount of 2% if they buy 3,000 units per order.

What is the EOQ for this item based on the current costs? Must be ordered in layers of 10, so round to the nearest "10"

Based on the price discount offered by the supplier. If you consider the annual ordering costs, inventory costs and cost of the item should Sam adjust his order quantity to 3,000?

a. EOQ = 2,000; Yes Order 3,000

b. EOQ = 2,000: No stick with 2,000

c. EOQ = 1,420; Yes Order 3,000

d. EOQ = 1,420; No stick with 1,415