Bases year they purchase from the baseless company

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Reference no: EM132199801

The BriteLite Company currently has a uses 20,000 lamp bases a year they purchase from the Baseless Company. BriteLite recognizes an annual holding cost of 20% and an order cost of $15 per order. Currently they order the EOQ and pay a price of $1.20 per base. The Baseless Company has offered them a price of $1.10 per base if they will order at least 3000 at a time. Should they take the offer or not?

Reference no: EM132199801

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