[Rene’e]

Thank you very much sir, and I do apologize, for typing the entire question I did calculate the EOQ and arrived at 30 units but I became lost after. Thank you again. Its clear now

[Rene’e]

Hi I have a question. The annual demand for an item of inventory is 45 units. The item costs $200 a unit to purchase, the holding cost for 1 unit for 1 year is 15% of the unit cost and the ordering costs are $300 an order. The supplier offers a 3% discount for orders of 60 units or more and a discount of 5% for orders of 90 units or more. Calculate the cost-minimizing order size.

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