An Item Has an Annual Demand of 25,000 Units, a Unit

question 1

Essay

An item has an annual demand of 25,000 units, a unit cost of $10, an order preparation cost of $10, and a carrying cost of 20%. It is ordered on the basis of an economic order quantity, but the supplier has offered a 2% discount on orders of $10,000 or more. Should the supplier's offer be accepted?

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Definitions:

Part-time Basis

Employment status where an individual works fewer hours than a full-time schedule, typically offering greater flexibility.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Learning Processes

A series of methods or activities by which individuals acquire new information or skills.

Training Techniques

Methods and strategies used to enhance skills and knowledge for professional development and efficiency.