Question 1b
Marking Guide
(b) Inventory cost under current ordering policy 1
Revised holding and ordering costs 1
Inventory cost if discount is taken 1
Benefit if bulk purchase discount taken 1
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4
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(b) Inventory cost under current ordering policy 1
Revised holding and ordering costs 1
Inventory cost if discount is taken 1
Benefit if bulk purchase discount taken 1
–––
4
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