With the quantity discount model,the basic EOQ total cost formula is modified to include a term,PD,calculated by taking the purchase price multiplied by annual demand.

Name: With the quantity discount model,the basic EOQ total cost formula is modified to include a term,PD,calculated by taking the purchase price multiplied by annual demand.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is true. The quantity discount model takes into account the purchase price of items and adjusts the EOQ formula to include the PD term.

With the Quantity Discount Model,the Basic EOQ Total Cost Formula