The chart is completed

READ THIS FIRST: As we've discussed in class many times, every mathematical model has its limitations and assumptions-and some are very restrictive and often contradict 'real world businesses practices. Case in point is the EOQ model which does not consider freight costs (seemingly at all) nor purchase price discounts (for ordering in larger quantities). This does NOT mean the EOQ model isn't useful; it DOES mean we need to make some additional calculations ('top-side' adjustments). As such I present you base-case E0Q assumptions (Scenario 1) as well as an alternative Scenario 2 where the supplier (seller) offers both a purchase price discount and a freight discount for ordering in increments of 450 (instead of the EOQ quantity). So perform the EOQ calculations exactly as we did in class (Scenario 1), then performed the same types of calculations (with the order quantity of 450) in the alternate Scenario 2 (NOTE: annual volume doesn't change in either scenario), then answer the questions at right. Remember what we I said in class: "just because EoQ might be your firm's optimal order quantity, it doesn't mean its necessarily your supplier's optimal order quantity. Basic EOQ Model: READ THIS FIRST: As we've discussed in class many times, every mathematical model has its limitations and assumptions-and some are very restrictive and often contradict 'real world businesses practices. Case in point is the EOQ model which does not consider freight costs (seemingly at all) nor purchase price discounts (for ordering in larger quantities). This does NOT mean the EOQ model isn't useful; it DOES mean we need to make some additional calculations ('top-side' adjustments). As such I present you base-case E0Q assumptions (Scenario 1) as well as an alternative Scenario 2 where the supplier (seller) offers both a purchase price discount and a freight discount for ordering in increments of 450 (instead of the EOQ quantity). So perform the EOQ calculations exactly as we did in class (Scenario 1), then performed the same types of calculations (with the order quantity of 450) in the alternate Scenario 2 (NOTE: annual volume doesn't change in either scenario), then answer the questions at right. Remember what we I said in class: "just because EoQ might be your firm's optimal order quantity, it doesn't mean its necessarily your supplier's optimal order quantity. Basic EOQ Model