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  • August 6, 2015 at 8:42 am #265822
    mysterykabuu
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    A wholesaler has an annual demand for dolls of 1,400 units. The cost of typical doll to the wholesaler is kshs 400 if she orders between 100-200units. The carrying cost is estimated to be 20%of the unit price and the ordering cost is kshs 25 per order. If the distributor orders 201-299, she get a2% discount, 300-399 a 5% discount and 400 or more she a 5.5% discount.
    1. Determine the EOQ and advice on the best discount.
    2. Find the optimal number of orders. How do I go about this.

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