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QUESTION 7 Gadgets Pty Ltd uses 1 000 bearings per week. The cost to place and receive an order is $100. Carrying costs are 40 cents per bearing per annum a determine the economic order quantity b) If the vendor now offers gadgets a quantity discount of 1 cent per bearing if it buys in order sizes of 10 000 bearings. should gadgets avail itself of this discount?• QUESTION 7 • • Gadgets Pty Ltd uses 1 000 bearings per week. The cost to place and receive an order is $100. Carrying costs are 40 cents per bearing per annum. • • a) Determine the economic order quantity. • b) If the vendor now offers gadgets a quantity discount of 1 cent per bearing if it buys in order sizes of 10 000 bearings, should Gadgets avail itself of this discount?
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