Question 2b
Marking Guide
| current annual ordering cost | 0.5 | |
| current holding cost | 0.5 | |
| total cost of current inventory policy | 1 | |
| revised cost of materials | 0.5 | |
| revised number of orders | 0.5 | |
| revised ordering cost | 0.5 | |
| revised holding cost | 0.5 | |
| net benefit of bulk purchase discount | 1 | |
| comment on assumptions | 1 | |
| max marks | 6 |