1) The cost of taking discount or implicit cost of credit term
Discount %/( 1-discount %)* 365/ (full allowed payment days-discount days)
0.045 x 365 .
(1-0.045) (60-10)
= 34.40%
2) Economic order quantity= √2 x D x S
H
= √2 x 52000 x 30
(100 x 10%)
= 558.5696018
=559 units
3) Reorder point= maximum per day x maximum delivery time
52000 x 10
(365-104)
=1992.337165
=1993 units
Discount %/( 1-discount %)* 365/ (full allowed payment days-discount days)
0.045 x 365 .
(1-0.045) (60-10)
= 34.40%
2) Economic order quantity= √2 x D x S
H
= √2 x 52000 x 30
(100 x 10%)
= 558.5696018
=559 units
3) Reorder point= maximum per day x maximum delivery time
52000 x 10
(365-104)
=1992.337165
=1993 units
