We have the following data related to inventory management of a company: The purchase price...
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Finance
We have the following data related to inventory management of a company: The purchase price per unit is $150, the annual carrying costs are 20% of the value of inventory, the fixed costs per order is $2,500, and the annual usage in units is 6,000. We want to apply EOQ model to manage the inventory. The company has the option to receive a discount of X% on orders of 2,000 or more. What is the minimum value of X so that the company will take the discount?
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