Jambalaya Ltd.sells 120,000 units a year.Its carrying costs are $0.35 per unit and its ordering costs are $127 per order.Required:
a.Calculate the economic order quantity.
b.The supplier has offered a $0.05 discount per unit (on all units)if the order size is 20,000 units.Should Morrissette increase its order size?

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The Answer of Jambalaya Ltd.sells 120,000 units a year.Its carrying costs are $0.35 per unit and its ordering costs are $127 per order.Required:
a.Calculate the economic order quantity.
b.The supplier has offered a $0.05 discount per unit (on all units)if the order size is 20,000 units.Should Morrissette increase its order size?