inventory control part c

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December 25, 2014 at 3:00 pm #221614
winters
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Sir in part C of the chapter 5000 units were the best to order giving us 1% discount, but if we order more than 5000 units and less than 10,000 units, will it always give us the cost less than the EOQ cost or can it exceed?
December 26, 2014 at 4:02 pm #221659
John Moffat
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The cost will always exceed because the inventory costs will be higher and there is no extra discount.
(I assume that you are watching the lectures, where I explain this? There is no point at all in using the course notes without the lectures that go with them).
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