Determine optimal order quantity according to the EOQ model

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Reference no: EM13299711

Discount Category

1 2 3

Quantity Purchased

1 to 49 50 to 99 100 or more

Price (per case)

$4.00 $3.90 $3.80

(a) Determine the optimal order quantity according to the EOQ model with quantity discounts. What is the resulting total cost per year?

(b) With this order quantity, what is the time interval between trips to the distributer?

Reference no: EM13299711

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