11 thoughts on “03 Quantity Discount Model

  1. please help
    Demand is 5,000 units per year. Ordering cost is N100 per order and the basic unit price is N5. Carrying cost are 20% per annual. Discounts are available thus:

    1,200 – 1,399 Less 10%

    1,400 – 1,499 Less 15%

    1,500 and over Less 20%

    What is the most economical quantity to order?

  2. Many thanks sir. I wish u were our instructor. I was stucked at the point as to what quantity should be taken, but u cleared it. Apart fro this i wonder why EOQs should be calculated in quantity discount models if they have apparently nothing to do with it because ultimately we go for the discount quantities.

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