Answer to Question #86161 in Other for Faith

Question #86161
Bara enterprises operates in Kitale town. On annual basis, it orders 480,000 pens form a Nairobi based distributor. A packet of 24 pens delivered to Baras warehouse cost sh 480 including transport charges. The supermarket barrows money from ABC bank of an interest rate of 10% p.a to finance its inventories. The supermarket also incurs sh 1,500 to place an order for the pens and sh 8 carrying cost for each pen


i) Calculate the economic order quantity (EOQ) for the pens
ii) Total cost of the EOQ.
iii) For orders for 72,000 pens and above the distributer has offered a discount rate of 10% on delivery price.

Advice the management of the supermarket on whether to take advantages of the discount offer.
Expert's answer
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Assignment Expert
20.03.19, 12:11

Dear angiebrooks, please post your question in the corresponding field for questions on our website

20.03.19, 12:07

describe the cost function of Bamburi cement limted given by total cost (TC)=4q2+1b. find the variable cost

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